I was working this game as the scorer, and talked with the replay official. Yes, they missed the illegal block, but that can't be corrected by review. Once the call was made (or not made) on the field, the only things for review were: did LSU touch the ball before it went 10 yards (yes), and who recovered (UNC). But it should have been flagged for the contact by UNC. No one even mentioned the formation, I think that was far too close to call.
As a kicking coach, you kick the onside kick to the side that is best for your kicker, irregardless of which team is on which sideline. In reality, what difference does it make? There is nothing anyone on the sideline can do to help.