Keep 26 bowls (And get rid of that stinkin' Toronto Bowl 😛 ).
Isolate each BCS conference champ plus 2 At larges, for an 8-team playoff system, like you proposed. Each round 1 game will be either the Orange, the Sugar, the Rose, and the Fiesta. After those games are played, you are left with a 4-team playoff...even if it is a "Plus 2" system.
Look at it this way. LSU could have played in the Sugar Bowl this year if that were the case, and Ohio State in the Rose. They can keep their precious traditions and generate even more hype and revenue (from having bigger programs in the bowls instead of freakin' Illinois).
This year's 1st round games could have been this:
Rose: USC (Pac-10) vs. Ohio State (Big 10)
Fiesta: Oklahoma (Big 12) vs. WVU (Big East)
Sugar: LSU (SEC) vs. Kansas (At-Large)
Orange: Georgia (At-Large) vs. Virginia Tech (ACC)
Round 2 would have probably been this:
USC vs. WVU
LSU vs. Georgia
* The reason for this is to prevent two teams from the same conference from potentially meeting in the title game *
Title Game:
USC vs. LSU
National Champion: Trinity Tigers