I think collectively several posters have analyzed this pretty well. A couple more thoughts:
We could take this as a compliment. She could have said something like: "When they play like they did yada yada yada they can compete with the very best." She made "the very best" concrete by supplying Connecticut. Note that you could say this about a lot of teams. Louisville, for example, if playing their best, could hang with Connecticut for, say, a quarter and a half or maybe even a half. I wouldn't expect that team to beat UConn, though, barring such things as bad foul trouble or extremely poor shooting, over 40 minutes.
Another point is that Stephanie White has called UConn games several times, including I believe last year. She was very complimentary and couldn't disguise her admiration. She has a lot of credibility as a player and coach, and has seen a lot of games.
Finally, this. UT has a lot of fine players. And they deserve a lot of credit for coming back from a big deficit and making the plays to beat a highly regarded Notre Dame team. But they are still a highly flawed basketball team. Again, barring exceptional circumstances, UConn would beat them handily. Most of me would like to see that. Part of me would not like to see the matchup happen because of the way the media would treat it. The players and coaches of each team, and especially Geno, would have to answer question after question about a past rivalry that has seen its day and will never recur. I would much prefer that Geno and his charges be allowed to focus on the business at hand.