The past week, particularly today, has been very encouraging. It seems the offense is finally reaching its potential, and the defense is even able to play zone when man-to-man doesn't work well. If Matthews finally gets past his struggles (in the second half he finally played okay), then they can definitely make a run in the tournament, especially if they can get a 4 seed and be in the Detroit region.
If Nebraska gets the 4 seed for the BTT, then I still think Michigan still has a chance to win 4 games in 4 days like last year (the only difference is having to play one of the bottom 4 teams on Thursday), though I think Purdue will probably be most motivated to win the BTT since they didn't win the regular season (barring an upset by Wisconsin, of course) after starting so strong.