Andy Phillips is perfectly capable of kicking the ball out of the end zone on a kickoff. Against Michigan, the Utes put it through the back of the end zone on all five kickoffs. We can’t know whether this was because the Utes feared the stunning athletic ability of Julius Peppers or if they didn’t feel they had yet perfected kick coverage to wear it was worth the risk, but it’s certain that Phillips is more than capable of making that play.
What the Utes do on kickoffs is intentional. The coaches figure that the kick coverage will hold the other team behind the 25 often enough, and give up massive returns infrequently enough, that over time the special teams unit will start to take away points from opposing offenses.