#15 seeds have four wins in the 26 years since the tournament last expanded:
hampton over iowa state
richmond over syracuse
coppin state over south carolina
santa clara over arizona
i agree that this expansion makes it slightly more likely that a 16 will win... instead of being mediocre minor programs that somehow won their conference tourneys (those teams will now be 17s), 16s will be minor programs that actually had good years.
as to the other point, i bet the ncaa will forbid networks from referring to the 16/17 games as play-in games. these games will be officially referred to as part of the tournament and treated as such. i actually think it's a decent deal for these teams-- rather than just being sacrificial lambs to a #1, they get a chance to play a competitive game on national tv. seems like a fair trade-off to me.
ISU was overseeded and missed critical free throws. It will continue to happen to #2 seeds.