Well ... it's pretty clear that you don't like Notre Dame, Harvey, but let's look at the facts here.
Navy has not been a "cupcake" for quite awhile. Using the Sagarin ratings, which are not perfect but objective and pretty good, let's take a look at your theme here.
First, Notre Dame has the 5th toughest schedule in the country. The two teams they lost to (Geo/Miami) have a combined 1 loss.
Second, Navy is a very difficult team to have on your schedule, and there are plenty of Notre Dame fans that bemoan the school's decision to follow the tradition of keeping them on ND's schedule. You need special prep to face Navy's option, and Navy's cut-blocking has caused a lot of injuries over the years, sometimes to key players.
As for Navy's strength, using the Sagarin ratings, Navy is ranked ahead of 4 SEC teams - Kentucky, Florida, Mississippi and Tennessee, to say nothing of the out-of-conference cupcakes the SEC "powerhouses" routinely schedule before their big games - essentially scheduling a bye before their big games. For example - Alabama scheduling Mercer before it's road game at Auburn.
In other words ... you're dead wrong.
And as for Navy covering the spread - lots of handicappers were on that one - ND coming off a deflating loss and facing Navy between key opponents Miami and Stanford. We'll take the win and focus on Stanford, where ND is properly favored to win.