So, the Wolverines have played 3 ranked opponents all year and are 2-1 in those games....losing to Notre Dame and beating Penn St and Northwestern.

We, on the other hand, have played 5 ranked opponents and are 4-1 in those games....losing to LSU, and beating South Carolina, UF, UK and Auburn. Remember, we squashed 3 straight ranked teams and the Gators and UK were both in the top 10!.....during that same stretch, Michigan played and defeated only ONE ranked team, Penn St.
Soooooo....tell me again why they should be ranked ahead of us?

Perhaps the AP Pollsters, FBS Coaches, and 13-person College Football Playoff Selection Committee value Michigan's 7-point road loss to #3-ranked Notre Dame (10-0) more than UGA's 20-point road loss to #7-ranked LSU (8-2). Regardless, things should work themselves out in the next 13 days as #4-ranked Michigan plays at #10-ranked Ohio State this Saturday then the following week #5-ranked UGA plays in Atlanta vs. #1-ranked Alabama.

It is pure bias, plain and simple. The overwhelming majority of over 70 unbiased computer rankings have us above Michigan:
https://www.masseyratings.com/cf/compare.htm
Including 5 of the 6 polls used in the old BCS.

But as AFD mentioned, it doesn't really matter than much. We are still going to have to beat Bama to get into the CFP

Moot point.

yeah, I'm well aware that we have to beat Bama...either way. Myself and the kids were just pondering everyone in the top 5 or 6 and wondering why they all deserve to be there. With Michigan, it just feels like it's a 'let's make the Big 10 feel like they're relevant...' situation by the pollsters.

I think that is exactly it, both teams lost on the road, but they lost by 7 and we lost by 20. They lost to a team that still doesn't have a loss, while we lost to a team that has two losses. Do I think we could beat Michigan head to head, yes, as they to me are not any better than us and I don't think their D is any better than UF, UK, or AU that we just beat. I don't think their offense is any better than anyone we have played this year honestly but as others have said, at least in the case of Michigan and UGA, both teams will have to earn their way in. ND, they will likely go 12-0 but to me have not looked very good in doing so. Clemson likewise will go 13-0 likely and will not have played a tough schedule at all. Bama, UGA and Michigan will all earn their spot. I just hope Bama is out if we do beat them. Committee has said there will be no potential rematches.

Earlier loss.
Close loss to a higher ranked team.
Some decent looking wins over lesser conference teams.

And of course, it doesn't matter anyway. They still have to beat OSU and NW and the Dawgs have to take care of Tech and Bama. If both win out, UGA will make the playoff anyway.