I don't agree with your argument that Michigan ran too many formations last season. Formations are cheaper to add than plays in terms of time spent to learn. Also, all of the college offensive coordinators that I have been around script their first 10-12 plays to make sure that they show all of the formations they intend to use for that game. They do this so they can see how the defense is aligning to each of their formations in order to determine what formations are most advantageous to use going forward in the game. In fact, Michigan State used more than 8 different formations on their opening drive vs. our Buckeyes in the BTen title game. Were they overloading their players too?
Michigan's offense was bad last season, there is no doubt. However, I do not believe that too many formations/schemes were the issue.