Some of Penn State's problems are not due to Big 10 scheduling. Also, some of their old eastern foes they used to dominate decades ago, have gotten much better. West Virginia and Maryland, for example, used to be wins Penn State could just assume nearly every year. If they were playing these teams regularly nowadays, results would not show domination oneway.
Remember, Penn State won the Big 10 their first year, went undefeated, but Nebraska was claimed to be the national champs. Even PSU's Big 10 brethern voted for Nebraska. Those were the days of Kerry Collins and Company.
What changed for Penn State more than anything else were the scholarship limits. BC, Pitt, VA, VA Tech, Syracuse, Maryland, Notre Dame, Ohio State, Michigan, and even the Florida schools, plus others, are challenging Penn State, even for the best recruits out of Pennsylvania and New Jersey. At one time, Penn State owned this turf; not any more. Penn State still recruits very well, but so does their competition.
Also, Penn State running the same plays for the last forty years, others have figured it out! That may be too unfair to say, but there is a predictable and conservative element to it.
As to the general topic, looks as if the BE has only one team that will be really impressive: West Virginia. If West Virginia skids near the end, there will be a fuss about the BE's BCS representative this year. It would be nice to have seen Louisville in the BE a year early.