I'm not saying they are a top 10 team, I'm saying they have performed like one the last 6-8 weeks. W/L record is not so pretty, but that includes lots of blowout wins and a few close losses. We know that a team like that will generally play better in the future than a similar team that had a less impressive scoring margin.
For the season Michigan ranked #2 in the Big Ten in scoring margin but was plagued by a bunch of close losses keeping them down in the standings. That's why they are in the middling seed land of NCAA tourney brackets. That doesn't mean you predict them to play like that going forward, however. Predictive measures like KenPom and Vegas see them as a far better team than their W/L record would indicate.
For the season Michigan has not been nearly as consistent as Purdue, which is why Purdue has had a better season. But Michigan's peak performance is arguably just as good as anything Purdue can do, it's just that their lows are lower. If Michigan has an off game, they lose to OSU at home. If they are on, they blow out SMU on a neutral court.