Oregon isn't just beating opponents, destroying them. Hands down number 1 this week. 
Sat, Sep 4th, 2010   New_Mexico   03:30 PM   Autzen Stadium   W (72 - 0)
Sat, Sep 11th, 2010   at Tennessee   07:00 PM   Neyland Stadium   W (48 - 13)
Sat, Sep 18th, 2010   Portland_State   06:15 PM   Autzen Stadium   W (69 - 0)
Sat, Sep 25th, 2010   at Arizona_State   10:30 PM   Sun Devil Stadium/Frank Kush F   W (42 - 31)
Sat, Oct 2nd, 2010   Stanford   08:00 PM   Autzen Stadium   W (52 - 31)
Sat, Oct 9th, 2010   at Washington_St   05:00 PM   Martin Stadium   W (43 - 23)
Thu, Oct 21st, 2010   U-C-L-A   09:00 PM   Autzen Stadium   W (60 - 13)
They also haven't played anyone good to this point, EXCEPT Standford.   Dominating crap teams is hardly a "litmus test".
Auburn has defeated Three ranked opponents so far (and only two cupcake games so far, but Miss. St being one of them is as always unpredictable) and has a more quality schedule:
09/04/10    vs. Arkansas State                    Auburn, Ala.    W, 52-26
09/09/10    at Mississippi State                     Starkville, Miss.    W, 17-14
09/18/10    vs. Clemson                                Auburn, Ala.    W, 27-24 (OT)
09/25/10    vs. South Carolina (then #12)           Auburn, Ala.    W, 35-27
10/02/10    vs. Louisiana-Monroe                   Auburn, Ala.    W, 52-3
10/09/10    at Kentucky                           Lexington, Ky.    W, 37-34
10/16/10    vs. Arkansas (then #12)           Auburn, Ala.    W, 65-43
10/23/10    vs. LSU (#6 in BCS)                      Auburn, Ala.    W, 24-17
I'm sorry, but Auburn still has Alabama (Away &Top 10) and Georgia (Home) to go yet.   Oregon beat #9 Stanford (as I mentioned before, also their secondary was torched) and only has to face one other ranked team, Arizona.   My statement rings true, Oregon has the better chance of being Undefeated over Auburn, but if the two teams meet up, Auburn will beat them.