You need to get outside the IU bubble. Elite teams play 5-8 top games each non conference.
Kansas had the #1 rated non-conference schedule last year and played:
-Monmouth
-ETSU
-Chaminade
-UNC-Greensboro
-UMKC
-Wisconsin-Milwaukee
https://www.teamrankings.com/ncaa-basketball/ranking/non-conference-sos-by-other
IU is playing in a non-conference tournament that stands to have at least 3 Q1 opponents on neutral floor (Net 1-50):
-North Carolina
-Texas
-Stanford
and 2 potential Q1 opponents in Providence and Alabama. UNLV and Davidson are likely Q2 opponents (Net 51-100)
IU is likely to play on the road in the ACC/B10 challenge and every ACC team minus Wake Forest will qualify as a Q1 opponent (Net 1-75).
Depending on who IU draws in the Gavitt games, you're looking at possibly a Q1 or worst case Q2 opponent depending on venue
IU also has a neutral game against Butler which worst case would qualify as a Q2 opponent.
Very real chance IU plays 6-7 Q1/Q2 out of 11 non-conference opponents. That's a top 25 non-conference schedule anyway you slice it.
Your statement that elite teams play 5-8 top games is flat preposterous.
Duke played 3 Q1/Q2 opponents in their non-conference schedule last year.
Michigan State played 5 Q1/Q2 opponents last year, two being Virginia Tech and Georgia.
Louisville played 4 Q1/Q2 opponents last year, one being Akron.
Villanova played 4 Q1/Q2 opponents last year.
Ohio State played 4 Q1/Q2 opponents last year.
Kentucky played 4 Q1/Q2 opponents last year.
You severely misspoke on this one...again, although typical and expected.