In what reality does it make sense for a 2-loss LSU to be playing in a National Title game instead of a 1-loss Kansas or an undefeated Hawaii, not to mention the other 3 2-loss teams LSU leap-frogged to find its way in the 2 slot of the final BCS rankings? 

Sure Kansas and Hawaii may have "weaker" schedules, but in the sports world, isn't winning the most important thing?  Remember that LSU's two losses came to a currently unranked Kentucky team and an unranked Arkansas team, so it is not like LSU lost to the best of the best or something.  What more could a school like Hawaii do, other than play and win the games on its schedule?  Remember the 2004 undefeated Utah team, or the 2006 undefeated Boise State team? I would have put those two teams up against any other team in the country, but of course they were not given that chance. 
Additionally, in what reality does it make sense for a 4-loss team (Tennessee) and 4 different 3-loss teams (Florida, Illinois, Boston College, and Clemson), to be ranked in front of a 10-2 BYU team that won the last 9 games of the season and went undefeated in conference?

The only reality in which any of this nonsense makes sense is in the twisted, greedy minds of the BCS power brokers, who have set up a system to ensure that their conferences are overrepresented in the big-money bowl games so they can maintain their piece of the money pie.  It is a simple example of the "haves" versus the "have nots", and even in a season of startling parity like this one, they cannot admit that the system simply does not work. 

Ohio State and LSU will be battling it out in the "National Championship" game on January 7th, but it won't really be the National Championship game, but rather the "National Championship, minus any team that doesn't belong to the SEC, ACC, Pac-10, Big East, Big 12, or Big 10 conferences" game.  What a joke!