I would have liked to see Auburn at least get the chance to play for the championship.
USC is a great team - no doubt about it but playing in the Pac-10 reduces the number of true challenges and greatly lessens the chance of injury.
USC's talent greatly exceeds that of anyone in the Pac-10. It wouldn't be that way in the SEC, Big-10 or Big-12. In the ACC, they'd have at least three games with teams of equal or better talent.
That's why is is hard for teams to go on long runs in the SEC, Big-10 or Big-12. If Ohio State, LSU, Texas or Auburn traded places with USC, the odds are very high that they'd have won 34 straight games as well.
I can't argue with any of your points....