It is strange, just like many calls in each game that don't end up being reviewed. As fans we're told that every play is reviewed, but that's simply not true. I see plays every game that at least deserve to be reviewed, but most of the time, only the ones that make a difference in the outcome are reviewed, such as the one at the end of the Big12CG.
You say in all the years you've watched college football.... but replay has only been around a few years, and plays like the one in the UT-NU game are 1 in a million. When is the last time you remember watching a game where the QB threw a ball out of bounds like that and there was a dispute about how much time was on the clock? Off the top of my head, I can't recall one such occasion. Not saying one hasn't happened, just that it's rare.
The right call was made. Replay exist for a reason, to make sure the calls are corrected. There was 1 second left on the clock when the ball hit the ground, that is indisputable. The ref signaled incomplete pass with 1 second left, that is also undisputable. I don't see why, with this much undisputable evidence, people can't accept the fact that the refs made the right decision to put time back on the clock. Should a game be decided because the guy in the booth made an error in judgement? Maybe I'm wrong, but I don't think so.