HRE Otto IV
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There was a big talent divide when Syracuse beat Clemson a few years ago but it happened anyway. A much bigger divide than there will be between the top seeds and bottom seeds of the playoff imo. Upsets happen all the time. As for home field advantage, the top 4 seeds never even play at home during these playoffs. They have byes for the home game then play in neutral site bowls
If the 2nd round is at Bowls it will be a logistical nightmare. I doubt they go that route. Maybe it would work if they have 2 weeks off in between each round but that will take you towards February.
A regular mid season upset at home if totally different than a playoff game. We have had 7 years of the CFB playoff and not only have we failed to see an upset but we have failed to see close games in general. Heck we rarely see upsets in CCGs.