Not sure I'd have them over Kansas (who ESPN'S BPI has two slots behind at #5) but they're definitely a contender. Mind you they're prone to inconsistency on offense, but they're probably the best team in the country defensively (#7 in scoring D, #1 in Turnover margin AINEC) and their offense is in the top 5 using a "by committee" approach (they're averaging 90+ a game with a leading scorer averaging 13... seriously).
They're probably not on that top tier of contenders because they don't have that individual talent that can take over a game, but they have to be considered because they do what they do so ****ing well as a whole.