Wraith are you talking basketball or football because we all know no one cares about football in Kentucky...
There are a number of reasons Michigan can beat OSU. Michigan lost last year but actually outplayed OSU. That is what makes good teams great by winning even when they are outplayed.
You mention that they lost some D. I remember the Michigan team after 97' and they only lost a couple of guys but made a huge difference. They might step up and they might not.
Michigan has about the same number of players back this year but actually gets a couple of their linebackers back, which could have made a difference in the OSU game last year with Maurice.
The fact that Maurice has a history of injuries should be a concern. Same can be said of the LB's at UM, so it basically comes down to who is healthier.
The final factor is that it is in The Big House and that should help Michigan a great deal. Say it does not matter but home field always matters..
Art