I have no issue with this. I also believe it is fair that MI residents get lower tuition since they have paid indirectly through taxes.
The reason I was looking to understand IS vs OOS stats is to see if the stats of the IS numbers is pulled up by the larger (and more competitive) OOS pool and this obfuscation is hurting the IS students by presenting a higher barrier than that exists. If UM is not elitist and truly wants to increase IS applicants I would think the best encouragement would be to present a realistic view.
It is possible that UM is fully aware of all of this and the data shows no appreciable difference in stats…