The play in question is not on my list of favorites, either. However, in my opinion, the Longhorns have little choice. They run a spread offense with a zone read component (though the zone read component is far less prominent than it was during Vince Young's day). Texas's base offensive set is a shotgun formation with three wide receivers; consequently, the running game consists primarily of draws, sweeps, and option pitch outs.
During the days of Ricky Williams and Cedric Benson, Texas ran a far more conventional two back set with the quarterback lining up under center. Therefore, the running game was far more power-based.
In my opinion, this current Texas teams lacks the personnel to line up in the I-formation on any consistent basis.