That 2007 Michigan team was a very well developed, veteran team that year, and by all rights, should have been a BCS Bowl team if it weren't for a couple of fluke losses (App State, Wisconsin).
Mallett was already a very polished passer coming out of high school, and had a very good offensive line protecting him, along with Mike Hart there as a safety blanket.
We, on the other hand, were working with a bare cupboard, no true junior or senior depth (thanks to Lionel Tyrone Willingam's inept recruiting for the 2004 and 2005 classes).
In the weeks before, Tashard Choice (Georgia Tech's RB) ran wildly over us, and Penn State took us to the woodshed.
What's ironic, though, is that 2008's Michigan team was the equivalent of our 2007 team, once Rich Rodriguez tried to turn them into a finesse-based spread option team.