Historian: Yes, you are correct in everything you have posted, except when you say that Penn State was not invited to play in the Cotton Bowl. By neglecting to tell the readers of his book that Cotton Bowl officials tenured a tentative invitation to the Nittany Lions just a few days prior to the Ohio State loss (Nov. 22), Joe Paterno has committed the sin of omission. The fact is, Field Scovell offered a Cotton Bowl bid to Penn State the week of the Buckeye loss.
From Terry Frei's book, Horns, Hogs and Nixon Coming:
"The possible Cotton Bowl matchup between the Southwest Conference winner and Penn State had been derailed before the Ohio State loss. Penn State ... had rebuffed tentative overtures from Cotton Bowl officials and accepted an Orange Bowl bid."
Long Live the Longhorns by John Maher and Kirk Bohls:
"(Beano) Cook adds that Penn State Coach Joe Paterno didn't care for it (the Texas-Arkansas game) but the Lions blew it by snubbing the Cotton Bowl for the Orange Bowl against Missouri. 'Penn State should have played Texas,' Cook says. 'They bitch about not being No. 1, but they went to the Orange.'"
"We could never figure out why they didn't choose to settle it on the grass in Dallas, rather than from a soapbox in Pennsylvania."
-- Longhorn Freddie Steinmark on the protestations of Penn State and Joe Paterno that they deserved the national championship in 1969, after they refused the invitation to play the Texas in the Cotton Bowl.
"Field (Scovell) saw a lot of teams. We should have taken his advice. We should have gone to the Cotton Bowl."
-- Joe Paterno, quoted inCollege Football's 25 Greatest Teams.
Granted, The Nittany Lions didn't figure on the Buckeyes losing to Michigan and they preferred Miami to Dallas, they were quoted as saying so. But in jumping the gun they cost themselves a shot at the national title.
The key question is this: How locked into the Orange Bowl was Penn State after the Ohio State loss? At the very least, Penn State should have waited a bit before taking the Orange Bowl offer. Even if they hadn't had a shot at the national championship, the Lions were passing up a chance to meet a higher ranked team (either Texas or Arkansas) to play a lower ranked #7 Missouri team.