8-4 isn't even beating every team we are better than. It really sucks that our fanbase has come to expect losses to inferior competition...I hope that KF has fixed that.
I think you may have to buy some Hawkeye glasses that aren't so densely tinted. Michigan, Michigan State, and Nebraska are clearly more talented than Iowa this year. Purdue is probably even with us this year in talent and Northwestern is closer to us than you may wish to believe. ISU and Minnesota are in the ballpark (having those games in Kinnick should be helpful, though).
I really hate to admit this, but I'm a big enough man to say that imported_ankle23 and many of the other Ferentz apologists have begun to sway me. 2009 feels like a long time ago, but most college football programs have breaks in between raucously successful seasons (at least those that, like Iowa, are lucky enough to have the occasional raucously successful season). Many programs also have years like we had in 2010. Games are not won on paper.
I don't think Ferentz is infallible, but the instances in which his game management decisions have actually cost us games are VERY few. Fact is, some years, like 2009, 2003, and 2004, we'll win a good handful of our 'swing' games and have memorable seasons. The good thing now is, in the years we don't, we'll still be dangerous and almost certainly bowl-eligible. If 2012, is one of the former years, then we probably win close games versus ISU, Minnesota, Northwestern, and Purdue. The only teams I'm going to say we probably outclass in talent are CMU, Indiana, UNI, and maybe NIU (I've heard they've lost a lot).