Michigan has the length and mobile bigs to cover Villanova on the perimeter. Sounds like everyone is taking Villanova. I'd wait, see if it creeps up more and jump on Michigan + the points.
Everything I've come to learn about college basketball over the last few years tells me you're right. Michigan is an elite defensive team with mobility at every position and the ability to switch 1-4. Those smaller, versatile teams are the sorts that have given them trouble this season. Providence was a very ordinary team and yet they came one possession away from beating them twice in three tries because of their willingness to play hyper-small with Bullock at the five. It's also worth noting that PC made it a point of emphasis to slow the tempo, which is how Michigan has traditionally played this season (324th in adjusted tempo).
But I also can't shake the feeling that this is some all-time juggernaut. Mikal Bridges is an upperclassmen who might go in the lottery and yet sometimes I forget he's even on the team because they have so many weapons. Whereas in the past Nova would have a player or two that you could hide a defender on (JayVaughn Pinkston, Daniel Ochefu), the addition of Spellman allows them to flood the floor with five shooters at all times. That puts so much torque on a defense that even when you're perfectly equipped to guard them, your margin for error is razor thin. On the other end, Michigan has had dry spells. Do you play Duncan Robinson big minutes and risk Nova attacking him with a superior athlete like Bridges? Do you play Zavier Simpson big minutes knowing Nova - already a borderline elite defense - doesn't have to guard him? Can Wagner give you 36 minutes like he did against Loyola given how much energy he'll have to exert defensively? Isaiah Livers was 2 defensive rebounds away from posting a 12 trillion on Saturday and you started him. At what point, for as well-coached and defensively sound as you may be, are you just outmatched?
Having watched Nova storm through this tournament, winning every game by double digits, I've gotten some '09 UNC flashbacks. You don't think of this Nova team having the same talent that UNC group did, but of the guys on that roster (Danny Green, Wayne Ellington, Ty Lawson, Tyler Hansbrough, etc.), none turned out to achieve things at the next level that Brunson, Bridges, Spellman, etc. cannot. The splits ('09 UNC, 1st in adjusted offense by a wide margin, 18th in adjusted defense) are eerily similar to Nova's from this season.
We think of that UNC team as an all-time great, yet, much like Nova, they weren't the #1 overall seed in their field. They were a deep, skilled, veteran team that may have simply gotten bored at times during the regular season. I'm not sure years from now we won't look at this Nova team the same way.