Kyle was a top 25 recruit in the 2009 class as a freshman. A number of big time schools were recruiting him back then. As some have already said, he was projected to be 6' 10" or bigger when he stopped growing. Both of his parents are really tall. I don't recall how tall they are, but their height and size, combined with Kyle's early growth rate gave his doctor a reason to believe he could be much taller than the 6' 8" he's listed at now.
He was getting quality minutes on a loaded Athletes First AAU team as a freshman and sophomore. But he was never the same after his lengthy recovery from a severe knee injury. I saw him play a couple of times on television when he was a senior, and he was still very tentative. I can't say what he was like before, but I didn't see a player who got me too excited.
I think Coach Capel did the right thing by honoring Kyle's scholarship. The kid had been an OU commit for three years. It would not have set well with some people in Oklahoma if he had been turned away after waiting that long to play at his favorite school. Besides, who could say for sure what kind of player he would become if he could manage to overcome his injury physically and mentally and fulfill the potential predicted for him as a freshman? Kyle continued to be a top 50 player for sometime after he got hurt, so it's not like recruiting services didn't see his potential early on. When the decline started, though, he fell steadily out of the top 100 and later the top 150.
To be honest, I don't know if he will ever get meaningful minutes at OU. One would think that his best bet is to transfer to a mid-major where he can at least get some playing time. But I do not have a problem with what Coach Capel did. I think we all know that most coaches would have said, "No deal, kid. You're not the player we thought you would be," and given Kyle's ship to someone else. I'm glad compassion for people and keeping your word means more to our coach than a scholarship.