If you take away Utah's baffling losses from the last two seasons (36-3 v Boise State, 31-15 at Wyoming, 20-12 v Air Force, 27-0 at UNLV) and they have 10-3 in 2006 and 11-2 in 2007 with wins over Louisville and UCLA. If they had been winning the games their supposed to win (at home or vs lesser foes) then I could see them getting that sort of love. But they didn't win those games, so I have little faith that they will not drop a couple head scratchers again this year.
Steele defended his rankings of BYU and Utah here.
He seems to know more about the MWC than most pundits, but I disagree with him here. He based it heavily on the fact that BYU narrowly escaped both of the last games vs Utah, but the thing is that even if Utah had won both of those games they still would have only tied for second place in the conference and BYU still would have won the conference against the same competition. When you look at Utah's body of work it is not nearly as complete as BYU's. Then again our defense is a big ? this year. I think they will play very well, but Utah didn't have as many holes to fill, that is until their whole D-line fell apart. I think Utah SHOULD be good this year, but they SHOULD have beaten UNLV last year, so I am not holding my breath.