16 teams would be too many for a CFB playoff. This year you could even have as few as six, but this is an odd year in that no one below #6 has fewer than two losses.
I think you could safely go with a 10 team playoff. No one outside the top 10 has any real room for complaint about not getting to play for the title.
So, this year that would be:
As for the "top team won't win it!" thing, are they really the best team if they lose?