You have been high on this team for a long time; if Michigan is able to pull off the upset, you have every right to throw up copious "I told you so" posts next week.
I'm not as sanguine as you about our prospects, but the recurring memory I keep having is of the Notre Dame and Syracuse games in 1998. Coming off a national championship and with one of the highest-rated recruiting classes we ever had, I fully expected Michigan to mop the floor with both those teams--instead, we started 0-2 and got bounced from the rankings. UM recovered to go 10-3 that year, and finished witha higher ranking and better record than both ND and Syracuse. But fot those two weeks in September, we weren't better than either of those two teams.
Everyone seems to be just assuming 2012 Alabama will be just as good as 2011 Alabama. They definitely have the talent to be. But that doesn't necessarily mean it will happen--or if it does, that it will happen right away. I don't expect Michigan to win, but the idea isn't crazy talk. (Personally, I think it's more a case of people not wanting to get their hopes up and then have them dashed.)