That does seem like the most fair way to do it. What I don't like about college is that the punting & kick off game are taken out of the picture. Obviously in the NFL, the team that gets the ball first wins something like 70 - 75% of the time, which isn't fair at all.
This seems like a good balance and the most fair option.
The other problem with the OT is that the team to go last has 4 plays to make a first down, not 3, if a TD is needed. The first team to play almost always has to kick a FG if they don't make a first down on 3 plays or risk losing on a FG.