If Michigan loses and Florida St. and Texas both win, that's a problem, even if Georgia beats Alabama.
While I usually love college football chaos, I think it's best for Michigan if there's no chaos this weekend. If Georgia, Michigan, Washington and Florida St. all win, that's a winnable semi-final for Michigan. An Alabama upset over Georgia would be bad in that respect, because it could set up a #1 Michigan for a semi against an SEC opponent.