Records of the ten oldest teams in CFB

all the major recruiting sites have him listed as a pocket passer.

he had 104 yards rushing, total, in his first (and best) year at Houston

In what way is John O'Korn a spread QB?  Do you mean as a passer?  I mean, the offense they ran at Houston was definitely a spread variant, but hell Michigan lined up out of the shotgun a bunch last year (and do some this year) before blocking issues made that very difficult.  

Drake Harris tore his hamstring enough times he could never see the field and moved to corner, where he played a second against Florida and hasn't been seen since.  Moe Ways was a miss.  Wheatley Jr. is a RS sophomore who's probably better equipped as a blocker than a consistent pass catcher.  I have no proof that Ways is a good blocker, but the fact he apparently can't catch the ball makes it a dicey proposition to put him out there for a soul purpose of blocking on running plays.  

Also, and I assume this is coming from your insider info, do you know if the playbook they currently run is huge and dense?  All I've seen the past 3-4 games is a scaled-down playbook with few variants.  What is killing Michigan isn't the size of the playbook as much as not being able to consistently execute the plays they do have.  They don't block particularly well on zone runs and struggle to get to the second level consistently.  Running backs struggle to consistent read and react to cutback lanes and following blockers when they do properly set up the play.  They don't  block all that well during conventional passing downs, and O'Korn on the run is a diminishing return part of the offense that is further hamstrung by dropped passes.  They aren't good on offense because they aren't that good at any one part consistently; they could call 10 plays a game and if you can only execute it well 50% of the time, that's not good.  

I honestly don't know how the playbook has changed this year compared to previous seasons; my guess is losing Speight messed stuff up, plus them realizing that what they saw as growth in some parts of the team over the offseason didn't translate perfectly to the season.  But saying "run a different offense with these players and teach them all of these new plays because they are perhaps marginally better suited for them" goes against what most successful coaches do.  Michigan has tinkered at the fringes (they are more power-heavy further along this year, fewer receivers and more protection on passing downs, small wrinkles), but if I'm Harbaugh I'd rather suffer through a rough patch with a bunch of freshmen and sohomores now versus trying a 1-year experiment to get a slightly better version of John O'Korn and Moe Ways for 6 or 7 games.