I thought this was a good article that clarified some thoughts I already had stewing around in my head. It sounds like Cam Newton had a very similar read progression that Denard had last year.
Essentially, I think Denard was at level 1 last year, which is all you need in college when you are faster than everyone else on the field. The West Coast Offense generally requires the quarterback to be at level 2 and the receivers need to make the same reads, although I did just read that a receiver sends a signal to the QB to let him know what they are reading, so the QB knows what to throw. That might mean the QB has less responsibility in this particular system.
However, moving from level 1 to level 2 could explain a lot about why Denard is having a hard time adjusting to the new system. Hopefully, he can take in more of the playbook and gain some more understanding during the off season and come out in the Fall ready to go.