I did struggle with Minnesota ahead of Denver for that very reason.
UNO/Bemidji is not and was not ever an argument over "who's #1", which I feel deserves lot more scrutiny and I don't think the same rationale applies. And, I feel that Michigan's losses you mentioned were not nearly as bad of losses as those of Ferris State. Since they
collectively don't have a lot of (bad) losses, you have to base your opinion on
something and if you don't have a lot to look at then
when it happened starts getting negated in my book.
Of course, now Ferris State will steamroll to the title and make me look like a complete idiot.
Obviously, this is all incredibly subjective. I wonder what Michigan fan thinks of the current rankings?