In my opinion the TE's were greatly under used this year. The O-line was really good at run blocking, it was built to run block and they did it well, really well.
As for the WR's not beating people on the single coverage, Iowa has never had that. McNutt and DJK made plays out of nothing. RB's not making guys miss, that again has never been something Iowa has had since what Freddie Russell. Garmon might have grown into that but he wasn't going to do the between the tackles stuff that Iowa has to have if KF is head coach.
Manipulating the offense into making the safe play, yes that is what they did to Iowa all year long with the passing game.
I think the offense will be better next year, it is how much better is the question.
Here is what it will depend on:
1. Keeping RB/OL healthy
2. Keep it simple for the QB and utilize the TE's
Brian Ferentz came from NE, Iowa has three pretty good TE's with CJ being a clone of Jason Witten. The one thing that I think Iowa has done a poor job the last five years or so is styling the offense to the talent they have.
I still question weather KF trusts his coaches, it seems that since Drew Tate left things have become so ultra-conservative.