because we know the outcome but at that point in the game, you had a team that was reeling and confidence was quickly eroding. I think Bronco's thinking was "Hey let's try to get some points on the board and least come out of this drive with something and then we can start on building on that." 3 points isn't sexy but that point you still have a lot of football left and who knows what's gonna happen? The team did start scoring shortly after that failed FG drive.
Since you're in the mood for watching frustrating BYU losses to Utah, I'd recommend watching the 2005 game. In that game, Utah had jumped ahead early with a big lead on BYU who had only mustered 3 points as the half was winding. In one critical drive, BYU was in FG range but they rolled the dice and decided to for it on 4th down and failed. Nobody knows if they would've even made that FG, but many felt that the decision to not kick the FG came back to bite them because with those 3 points they would've avoided overtime and won.