That's the criteria's they use to determine the representative for the Big Ten Championship game when there are 2 teams tied, they get much more complicated when there are more. That's not how the Big Ten determines division championship, it's best record period. It does not matter if you tie other teams for the best record, any team that has the best record in the division is considered a division champion.
Granted I don't agree with it, I think they should use the same criteria's they use to determine the BTC representative as the division champion but that's the way the Big Ten has always done it, even before there were divisions. Every team that had the best record in the conference won a conference champion trophy regardless of ties.