It should have been a fumble, plain and simple. Let's just suppose for a moment, that the Bama player had broke loose from the scrum and ran it in for a touchdown. Do you think they would have called it dead due to forward progress?
Doubtful.
NCAA Rule 4-1-3-a states that the ball becomes dead when the runner is so held that his forward progress is stopped. Officials must determine if the opponent of the runner has sufficiently held or grasped the runner so as to have stopped his forward movement. This action is what kills the play not the whistle. A quick whistle can get an official into trouble, but too much of delayed whistle can also cause problems.
It was a blown call and I completely agree with the point you're getting at. The refs said "the call on the field is the runners forward progress was stopped." Um no, the call on the field was not. The whistle never blew.
NCAA Rule 4-1-3-a states that the ball becomes dead “when the runner is so held that his forward progress is stopped.” Officials must determine if the opponent of the runner has sufficiently held or grasped the runner so as to have stopped his forward movement. This action is what kills the play not the whistle. A quick whistle can get an official into trouble, but too much of delayed whistle can also cause problems.