No they were not. Well outside field goal range suggests that short gains wouldn't be enough to get into field goal range. If he wanted to communicate that they were just not currently in realistic FG range, the "well" part of the "well outside field goal range" is flat out incorrect. And if we want to get technical, he says when they called "two all out blitzes" - Denver was in fact in long but realistic FG range before the first one.
He uses that language on purpose - he's suggesting that the blitz was a bad play because the Bills could afford to give up a gain, as long as it wasn't a big play. That is patently false - not to mention that it was 3rd down with plenty of time on the clock, meaning even a very short gain would make 4th down - if they decided it was still outside of range, (like a 3 or 4 yard gain bringing up 4th and 6 or 7) easier as well
McDermott went for the kill with a depleted defense that had been hemorrhaging yards throughout the 4th quarter and I have no problem with it. The defense hadn't shown they could stop the Broncos from getting 10 yards (or more) in two plays for the entire 4th quarter.