I don't know that you can say a champion automatically gets in over a non champion but there's a lot of weight there which has to be overcome. PSU would have a loss to Michigan and Pitt which looks a little better. They'd also have wins against OSU and Wisconsin. So that's probably just enough of a resume to say yea they have the head to head and they have a couple solid wins and are the B10 champion.
Got to the SEC. Say the SEC East winner, possibly Florida, by some miracle beat Alabama. They're not even ranked now and there's no way you can justify keeping Alabama out. Would Florida get in over Alabama. I don't think so. Florida to date has beat no one ranked and has lost to UT and Arkansas. They'd have wins over a ranked FSU and Alabama in that scenario but they'd be coming from so far back that I don't think they would make up the ground. It's a refresh every week but can weekly refreshes pull you from out of the top 25 into the top 4 in a few weeks? PSU is at 10 now so I think that's a difference too. If PSU was a little farther back I'm not sure they'd have the chance that I think they do now.
In 2014 OSU jumped an undefeated TCU at the final moment, which shows the value of the conference title. Should PSU win out and be 11-2, the committee will have to weigh the value of the conference title, what a 3-point loss to Pitt means in terms of overall record, and head-to-head where PSU beat OSU.
It's a big if that PSU wins out, but if they do, and OSU beats UM, both could go from the toughest division in college football.