Kelly is not talking about level of the competition. He is constantly telling us that this is not what primarily concerns him. He is worrying [through good times and bad] about what is happening inside the family, both football-wise and holistically. Kelly is trying to build both a competent set of systematic tools [which are understood and performable by the players], AND at least as importantly, a "we can do it" attitudinal culture. He felt that he was making progress on both fronts, but senses that the Navy game was so negative that he has his work cut out for him to regain the players Mo-Jo and their willingness to do the work to make the systems produce. I'll bet that with all the success he's had that he hasn't faced many moments as psychologically crucial [that's what he is talking about] as this, and certainly none at Notre Dame. His remark, taken in context of a coach with long-term goals and who is simultaneously living in the "right now", makes perfect sense to me. Wish him and the staff luck this week on all the "head" management. And, by the way, he doesn't care a lot about what we think---just his guys.