My reply to your post.
1) Wrong, they would not say they had a suspect unless....that's all I will say for now. More at a later time. Correct, they have said they have no suspects.
2) Waunakee is like a suburb to Madison. You can go from downtown Waunakee to downtown Madison in the 20 mintues you describe. Easily. I say it's very likely she could know someone walking by at bartime.
3) That's the million dollar question.
Now my replies:
1) As to this strategy, it is not particularly publicly responsible. "No suspects" to the general public means "We have no idea." Most police PR in this situation will say state that there is no reason for the general public to fear. Madison LE has not said this.
2) I know where Waunakee is. It has a good high school, and I had a couple friends at UW who graduated from there. But Waunakee isn't a real big town, so they don't send a lot of students to UW. I'm sure young people Kelly's age drive from Waunakee to go out in Madison, though. Heck, students from Whitewater will too. I'm just saying that since she doesn't go to school there, it's not as likely she knew as many people and it would be less likely that she would know someone.