I spent a few years early in my teaching career as an assistant high school football coach. We noticed in live scouting and on film that one of our opponents sent two linebackers into gaps on punt returns and peeled off everyone else to set up a return (they had a really good returner). Like IU vs. OSU we were a pretty heavy underdog. We faked a punt from our own endzone and our upback (though not the punter) ran about 70 yards on the fake. We scored on the possession, mostly due to the advantage of a short field. We ended up winning the game 14-10. Our other score came on a trick reverse after a recovered fumble inside their 20.It was a horrible call, plain and simple, did it cost us, not really, but lets face facts, a fake punt from the 10 yard line is never a good idea, I do not care who is lining up to punt.
You talk about the element of surprise and if the announcer mentioned something about the possibility of a fake before we kicked, I am sure the OSU staff is smarter than the announcers, especially that crew which was awful!
Never is a strong statement, and reflective of hindsight or knee-jerk reaction. No coach who wants to be successful makes a habit of thinking in terms of never. You evaluate risks, make informed decisions and count on your players to execute. Given the information available, it was far from a horrible call. It's a bad call only if you have good reason to believe that your players won't properly execute. I'm sure if KW had doubts about whether it could be successful or doubts about whether Toth and others could pull it off he would have punted.
There's a reason that uneducated fans who don't understand the complexities of football are called Monday morning quarterbacks. They have no idea what needs to be done on Friday night, Saturday, or Sunday but have all the answers after the game.