I think the point is that the Vols are still a top 25 team with a win over a top 10 team and a great defense. No worries, they will be in a bowl. The Notre Dame game helps decide which bowl the Vols will go to.
BTW - the Independence Bowl ($1.2M) pays much more than the Music City Bowl ($780K). Independence matches against a BigXII team and the Music City against a Big 10 team. Tennessee has faired well against the Big 10 in bowls with wins over Ohio State, Michigan and Northwestern. However, the Big XII has been quite unkind, with 2 losses to Nebraska and another to Kansas State.
Last season Minnesota (7-5) beat Alabama (6-6) in the Music City Bowl.... and Iowa State (7-5) beat Miami-Ohio (8-5) in the Independence Bowl.
Tennessee's stock rises with a win over Notre Dame and an 8-3 finish. Miami, Florida State and Tennessee all finished the regular season in the top 15 last season with 3 losses.
With the possibility that Florida will lose 4 games this season (games as Georgia and Fla State) as well as Auburn (games against Georgia and Alabama)... the Vols could move up to the Peach or Cotton Bowls. I don't think Tennessee can do any better than 4th in the bowl pecking order behind Alabama, Georgia, and LSU. If 2 SEC teams make the BCS, then the Vols might move up to the Outback Bowl.