Jones has never coached as much talent as he has on his first UT team. In fact, not even close. There are more players on this team that will be in the draft next year than the total he's coached to date. He beat Vandy with a team that had less talent with Vandy. I am hopeful about what he might do with a team that has more talent than Vandy.
Your first couple sentences are spot on.
Your second to last sentence is a common fallacy, one that I had given into previously.
Butch actually had a somewhat more talented roster at Cincy than Franklin had at Vandy (using rivals recruiting numbers).
The four year averages at the time of the game: Vandy 73, Cincy 58.75. As a further comparison, UT the same year had a four year average of 16.75. So, those numbers go a long way to explaining the blow out loss to Dooley and the win over Franklin.
That isn't to say that Jones doesn't consistently get more out of his team than he should.
At Cincy he beat the following more talented teams:
2012 (Cincy 54.5):
Pitt (46.25);
VaTech (25.25);
South Florirda (50.75);
lost to Toledo (74.25) whom talent indicated that he should have beaten (won 2 more games than he should have).
2011 (Cincy 58.75):
NCSU (50.75);
Louisville (52);
South Florida (52);
Pitt (41.5);
lost to no teams he should have beaten (won 4 more games than he should have).
2010 (Cincy 68.75):
Louisville (55);
Rutgers (37);
but lost to Syracuse (72.75) and UConn (73.7) whom he talent indicated he should have beaten (won as many games as he should have).
To sharpen this point: It should be noted that beyond simply beating the teams that Butch should have, given his latent talent all of his years at Cincy, Butch's actual impact on his talent is roughly 8 talent points. That means that his average is beating a team with 8 points better recruiting (that includes factoring in the disparity between the teams that his talent should have had him beating).
IF he can do that at UT, whose current talent ranking is about 15, then he averages an ability to over-perform at such a magnitude to beat any team with a talent ranking no higher than 7. That means that on our schedule the only games that are historically out of reach are Bama and Florida. It should be noted though that the ceiling for a Jone's based team is beating a team of 29 points higher and losing to a team almost 20 points below. Ultimately that means that Jones is capable of beating anybody on our schedule and losing to everybody in the SEC but Kentucky and Vanderbilt.