They are bad. Props to the utes for going in and taking care of business in the Big House, but the fact that they are undefeated and coming off that "big" win, and only have 8 votes in the USA Today poll tells you how good Michigan is.
Virginia played a top 10 team well and just upset a top 20 team. They aren't world beaters, but they aren't the dumpster fire they were last year either. Michigan however, IS a dumpster fire.