Similar to the arguments we have every year about the IHSA playoffs, there is no system that will eliminate the blowouts. Football (sports, in general) is full of blowouts. The last championship game that was a 1-score finish was 2017.
4 teams, 8 teams, 12 teams, 16 teams... it's not about finding the perfect system, it's about more meaningful football, which means more money.
Personally, I'd go with 16 teams and eliminate the byes. Top 5 conference champs aren't guaranteed top 5 seeds, but do get top 8 so they have a home game. I'd like to see the P4 have 2 guaranteed spots, but the people controlling the money seem to want the 6th place SEC team to get their chance.....