Here's the way I look at it: No system is ever going to be perfect. In a 4-game playoff, the 5th place team will be screaming, in a 8-game playoff the 9th place team will be screaming, etc. However, in your example I would have much less sympathy for a 2-loss Georgia team than I would for the 0/1 loss teams that have been shafted in years past. You'd also conceivably have a 1-loss KState team being left out this year and again it's a little tougher to feel sorry for them looking at their non-conference schedule and the fact that they got crushed by a mediocre Baylor team.
The 4 team play-off system has warts, but fewer warts than the current BCS system, IMO.