7-5 is a step back, but not as much with a stronger OOC slate with an identical 5-3 conference record. It would likely be a case of comparable teams, slightly different outcome -- and that's if the blowouts continue.
In any case, there are good reasons to have expected a step back first, in my opinion. To start with, depth is a serious issue, Gregory a critical loss, and (apparently) new schemes will require an adjustment period, it was a 5-3 (in this B1G West?!?!) team to begin with from last year, ...
But it's never something you hope to see and a step forward would be far more encouraging.