re: Should division record be the only record that matters?

Really depends on the playoff criteria, to be honest. Would Bama have made it into the final 4 playoffs in 2011, or 2013? They were 10-1 both seasons, and widely considered to be one of the top 2 teams in the SEC (and generally, top 4 before the bowls).

If the SEC does some probing, and the answer seems to be "no", then I think you have to look at restructuring the entire conference championship, get rid of divisions and get the two best teams into the game. Let them play to determine which team makes it into the Field of 4. Otherwise, you run a serious risk of (for example) Mizzou or Georgia winning the SEC game, and knocking the conference completely out of the running.