You're spot on, but let me fill in the picture.On the Sugar Bowl tie-in - in 1978, Bama and Georgia were both undefeated in the conference with 2 weeks left in the season. IIRC, if Georgia won out, they would go to the Sugar since Bama was there in 1977. Georgia was kind enough to tie Auburn and avoid the scenario.
What you're saying begs an obvious question - "Why did Georgia go in 1981 when they'd just been the year before and they and Alabama were both undefeated in the SEC?" The answer is that after the Georgia-Notre Dame game, the SEC amended the agreement with the Sugar Bowl to permit the Sugar Bowl to pick ANY team that won the SEC title regardless. This was actually smart economics for the SEC because it enabled the conference flexibility to get TWO big-paying bowl games if they had two highly ranked teams (which is exactly what happened in 1981, when Georgia got the Sugar and Alabama got the Cotton, a game that paid $400,000 more than the Orange did that year).
In 1978, Georgia opted to kick the game-tying PAT with 5:18 left, figuring:
a) they would get the ball back and
b) Rex Robinson - the best kicker in SEC history at the time - was their insurance policy.
Dooley's action was defensible except for one peculiar fact: Auburn outgained UGA, 502-268, and rushed for over 400 yards, so why did Dooley actually believe he had a chance to win?
In 1979, it was even funnier: UGA wound up 6-5 but for awhile there was the possibility they would wind up 5-6 but win the SEC and a Sugar Bowl berth. Again, Auburn came through for us, beating Dooley that day.