I ... It seems to me that Frank believes in teaching players during practices about how to play (running, blocking, tackling, etc) and teaching a kind of mental toughness but then not micro-managing in-game situations. Certainly, he calls strategic timeouts and the OC and DC call plays, but it seems to me that Frank does try to give his players on the field a lot of discretion within his overall system.......
OK, you want more of an answer, here is mine. What you describe is what coaching is - you teach fundamentals, and you encourage toughness, and you put players in a position to where they can win. Pretty much all plays are called from the sidelines, but many/most coaches allow the QB's to audible based on what they see from the defense. Solich probably grants a little more freedom to audible than most coaches, but it isn't uncommon.
I do think he is more of a delegator when it comes to assistant coaches. Many of the great coaches have been - Osborne, Paterno, and Bowden all excelled because they made good choices for assistants, and delegated to them. On the other hand, not all coaches are in that mold. Snyder, at K-State is more of a micro-manager, so either can work.
As for calling the events that happened, "an obvious bonehead play", I think that goes above and beyond what is necessary. What happened happened in a matter of seconds, and thus was more instinctive that decision based. Had their been a timeout, and time to consider how the play would be run, it wouldn't have happened, but there wasn't. Going all out for the TD there was probably a 1-3 chance. Kicking the FG was probably a 80% chance he makes it, and a 60% chance Ohio wins in OT, since Ohio had the momentum, or a 48% chance Ohio wins. Trying a quick shot, then going for the TD was probably a 20% additional chance it works, plus a 10% chance of disaster, raising the odds to 54% or so. Yes, in the heat of action, TT turned the 54% chance to a 33% chance, but unlike some here, I'm not going to fault him for it. Without him, Ohio doesn't even have that chance. More than that, I'm not going to second guess what I might have done in his shoes (no doubt something worse), by calling his play "obvious boneheaded".
I for one hope that TT doesn't play more tentatively in future close situations because he is afraid of making another "obvious boneheaded play". I want the ball in his hands. I want him playing confidently, and aggressively. More often than not, it's going to work. On the other hand, if he's too tentative, or thinking too much, he will no longer be as effective.