Hard to say never - he has had some major studs there and this team isn't far away. But, to be in the National Championship discussion, you have to beat teams that are also in that discussion - Ohio State and Michigan in his own conference.
Aller is young and I think if he were more seasoned, they would have had a better shot. Their playcalling is vanilla, and I think part of it is because of QB play. Sean Clifford was there forever, and we know what he was.
Also, if that fumble return stood, might have been a much different game.
Not a PSU defender, but I don't think the talent gap is that significant. I wouldn't write them off.