I'd say about as good as anyone not named Houston or Uconn. We've proven we can beat UNC, Tenn, Alabama, Auburn, a lot of teams in the top16.
I think this will come down to seeding. If we can hold the 3-seed and get a fair draw, I like Kentucky's chances to actually steamroll it's first two opponents, and look like the best team out there. I really think we will wreck havoc on a 14-seed and a 6-seed. That 6-seed will actually be worse than a lot of the SEC teams we just beat in recent weeks. I think we throttle the opponents with 4 NBA level guards and wings. A team like Washington St or Dayton will have no idea what to do with a guy like Dilly and Reed.
Then, after that, you'll likely have to play quality teams, and those are really toss ups... but That's not for another 3 weeks.. which means 3 more weeks of games and practices for this team. By then, I'd like to think we look even better than we do now.. and I can see us cutting down the title.