I wasn't alive in 1969. But I going to guess college football is ALOT different now then it was then. And I am discussing problems with independence in the present not in 1969.
In answer to your second question a team out of the conference race can still effect the conference standings. You can still beat a team and prevent them from winning. When BYU,Utah, and TCU were fighting for the conference title, even if BYU was out of the race they could still prevent UT from winning it by beating them. So yes you can still effect the conference champion even if you are out of it yourself.