Yes, the teams in the Pioneer League compete in Div. I, but agree not to offer scholarships in their football programs. They do this because, according to NCAA rules, outside of a few specific instances, schools have to compete in the same division for all sports that they offer. So, if Dayton, Valpo, or Butler want to compete in Div. I in basketball and they still want to have a football team, then their football team has to compete in Div. I as well. But, they don't want to really be competitive in football nationally...just more of something to enhance the "collegiate experience"...so they've agreed not to offer scholarships in football. However, in the last few years, there have been a couple of schools that have removed themselves or been removed from conference championship eligibility by finding/sneaking a way to still offer a few scholarships in football. It's not against NCAA rules, but that is against Pioneer League rules, and there's a couple of teams that have done that that are rumored to be looking at moving up to full-scholarship FCS football.
When the FCS expanded the playoffs to 24 teams in 2013 (I think), they added an autobid for he Pioneer League. Personally, I'm all for conference champions being included in the playoffs. It hasn't happened in the past, but theoretically a Pioneer League (or one of the other "lower" conferences) team could somehow put together a really good team and be competitive in the playoffs, so I think we have to give them a chance at that.
I don't think Dayton is that team though...they're good for a Pioneer League team, but they'd still probably finish somewhere around 8-9th in the conference this year if they competed in the MVFC. If you look at their schedule, you see a couple of NEC teams (another "lower level" FCS conference...conference mandates "limited" scholarships...38 I think), a middle-of-the-conference (and first year playing football) Kennesaw State, and a bunch of Pioneer League teams. They went 10-1, but if Western was playing that schedule, I think they'd have gone undefeated and the closest game might have been within 20 points....maybe.
Anyway, I have no problem with Dayton getting in...they won their conference, they get a spot. It's not a "they were picked by the committee" situation. And honestly, I'd MUCH rather go play at Dayton in the opening round than having to go play at (where some people thought we'd go) Montana...who is a much better team, and Montana's Washington-Grizzly Stadium is a MUCH more difficult and imposing place to play at than Dayton's Welcome Stadium.
If you have to go on the road, would you rather play here (where Montana averaged an FCS-leading 23,777 fans at their home games last year):
or here (where Dayton averaged 3,101 fans at their home games last year):
Dayton will be on Thanksgiving break, plus it's close enough that we'll probably get a decent crowd over there. I wouldn't be surprised if the crowd ends up feeling fairly evenly split.