I just don't see the controversy. We have #1 vs. #2, #3 vs. #5, and #4 vs. #6 matchups. I think those games are all pretty compelling.
Would it be a more entertaining bowl if TCU was beating up on a 2-loss Iowa team, and Boise St. was defeating a 2-loss Georgia Tech team? Wouldn't the same people then be saying that the bowls didn't respect the mid-majors, because they had them playing greatly inferior opponents?
The only more compelling matchup would have been TCU vs. Florida, and Cincinnati vs. BSU. However, that would have required the Sugar Bowl to pass on Florida, or the Fiesta Bowl to pass on TCU. It also would have required a western school to travel east, and an eastern school to travel west, despite neither of Cincy or TCU having a reputation of traveling well. (TCU couldn't even fill its own stadium).
If anything, I think the Fiesta Bowl should be congratulated. They could have easily taken Iowa, a team that travels well and would guarantee a lot of money. Instead, they elected to go with BSU, despite that setting up a matchup of one of last year's bowl games. I think they should be commended for that, taking the higher ranked team over the one that brings more fans.