but if they are above 60, I would say it's possible to say they are better than half the FBS teams out there.
They might be an exception to the .500 record type thing.
I think the line gets blurry when you talk about a 5 win team with a Sagarin ranking in the 50-70 range. You might have to go case by case basis. I don't follow Utah or know enough about them to say strictly based on their 5-7 record. Hard to say. The teams ranked in the 50-70 range and/or with 5-7 wins would probably be classified as being mediocre, or average. If Sagarin has them in the 40's with a 5 win record, they are probably an above average team, if only slightly.
However, if you are winning 70% of your games and rank around 40ish (just an example, I don't know where BYU ranks right now or in each year the past 10 years, but I would bet it is close to that even since 2009), that seems well within a safe range of being in the better half.
I'm just speaking in general. If you want to evaluate BYU on a year by year basis I think they are generally safe, as well as over the course of the past 10 years.
I'm not perfectly happy with BYU football, but I recognize how hard it is to be very good at this level and I think BYU generally does well, although they are not great.