Best of Both Worlds,
Use BCS to select 8 playoff teams. The top seeded teams get home stadium playoff games vs. using the traditional bowls.
1. The major complaint of using the bowls, is because of how the bowls work. Most bowl games include more than just a game. The committees who put them together, go all out and wouldn't be what they are without those committees. Those bowl games also require a lot of notice of who is going to be playing. Its not just the game, its the event, and its not a 5 day event, its a solid week of "The ___ Bowl Game." As a fan who travels to bowl games, it would be impossible for a large number of fans (20-30K) to make arrangements for those games. Especially, if you have to go to 3 different bowl games, none of which are near each other. BCS bowl games do not have great attendance, and that would definitely reduce the attendance. Its not the importance of the game, its THE EVENT of a Bowl Game that gets traveling fans to go.
2. Home playoff games make for interesting discussion for the #4 and #5 seeds, but no argument for the #1 & #2 teams or for the #7 & #8 teams. Plus, those home playoff games would be sellouts with crazy atmospheres we have yet to see! It'd be like OU-Texas, OSU-UM, UGA-FLA, USC-ND, and WVU-PITT rolled into one game!
3. The traditional Bowl games could still work as they did before. As a team is eliminated from the playoffs, they could be selected to the current BCS bowls, giving plenty of time for them to do their thing. Plus, its still the same fantastic consolation for a team who isn't playing for a Title. It would allow for those who travel to the Bowls, to still do so. It would also give us a whole new set of matchups, since those teams wouldn't have played each other in the playoffs.
4. The Rose bowl agreement between the Pac-12 and Big 10, would not allow a playoff game to be played in the Rose Bowl, which would make the Rose Bowl a big sticking point. The Rose Bowl would still be able to get the conference champs together for a match-up, unless they both got to the Title game.
5. Keeping the playoffs seperate of the bowls (except for the Championship game), would create more quality post-season matchups.
6. More revenue for everybody. The playoff home team would keep all the ticket sales and concessions, but the conferences would get all the T.V. money to revenue share. That would be an additional 6 huge post season T.V. ratings games. Huge money, in addition to what the major bowls pay to the conferences. The University Presidents would know that they would all be getting more money.
Conclusion. Having home playoff games wouldn't diminish the regular season or the tradition of the bowls. Additional awesome post-season games. University Presidents would be seeing HUGE DOLLAR SIGNS.