You were right, it was one of the best games of the season. It just went the wrong way for ND. They should actually move up in the polls after that loss, but we know they won't.
USA Today - ND 12th (4-2)
You were right, they stayed the same or lost ground. But after that showing, they should have gone up. Its the first loss that is knocking the wind out of them, (if they were 5-1 after that game they would be either 3rd or 4th.
As a further note, only ND could lose to Michigan St. and still be 10 points ahead of them in the polls. It's good to be ND.