I think it is giving the kids credit. And, I think he also gives them some freedom within the motion offense.
But, I also think he does this in the huddle for psychological effect. He wants them to play "free" rather than "tight" or "thinking" or "forcing" the game; because that allows their talent to come out.
Sometimes K and the players will say that he tells them, "just play basketball." And, when they feel freed that way, that doesn't mean their training and reputation about what to do in the offense doesn't come through. It means they stop worrying about it.
Take even their fast break baskets. It actually takes a good bit of training to learn how to run down the floor on a fast break if you have 2-3 players. You have to stay in lanes, keep distance, and have a sense as to where the defenders are, which teammate has the ball and what he likes to do, etc. so you can draw the D away or find an open lane to receive a pass. They've been working on that since September I'm sure. But, if they are still thinking about that then they make mistakes. Or if they are trying to force it, they make mistakes. But, if they just let their training instincts take over then they are at their best.
I think that's why he took Grayson out late in the ND game. Grayson was trying too hard to force the action and making mistakes. He got out of control. There's a fine line between being passive/scared and forcing the action. Grayson is still learning to control that - he did great against UNC. Not so great late against ND. But, hopefully he can continue to be more comfortable going forward. These kids are still very young and learning and will make mistakes. The hope is they can remain mature enough to catch on and improve each game going forward. And that the moment doesn't become too big for some of them. If so, they have a great shot.