Hi Snake,
Your question can be argued in many different ways, because it is just a matter of opinion. You ask ten people about their thoughts on the winner of the AFC South, and you would get a strong argument about the reasons all four could win.
Your line of text "It was mentioned on the Dream Pod that the AFC South could very well end up being the best division" - the key word is COULD. As you are probably aware, QB's are one the biggest factor's when deciding how good a team are, and IND and HOU have QB's coming off big injuries. Nobody knows how there recovery is really going until you see them play. There is a argument to say that the JAX QB is just there to manage the game and avoid turning the ball over. He isnt rated by most pundits and experts and JAX have to rely on a very good defence to compensate. There is probably fewer questions over the TEN QB, but he isn't completely straight forward and polarises opinion with his accuracy and injury record.
My advice, do as much reading and research as you can - you admit you are weak on the NFL, which is not a problem. Its easy to get stronger, if you can commit the time to research. ProFootballFocus, ProFootbalTalk, Rotoworld, the NFL site, Bleacher Report - they are all excellent in their coverage of every team. Like any sport, when we gamble our hard earned money, it is often related to the time we put into studying and it is always the most satisfying reason when we do win.
Once your research has been done, you will be able to answer every question you raised above. I hope this advice helps you :)