Colleges expect to experience what they call “summer melt” each year. That’s when incoming freshmen, who already enrolled and deposited, change their minds. So, yes you can withdraw from Michigan and attend Rose-Human instead, but just don’t plan to see your deposit dough again. (Well, it can’t hurt to ask for a refund, but it’s unlikely that you’ll get it.) And don’t worry about bad karma because you’re not doing anything unethical.
BUT … before you say, “Thanks anyway” to Michigan, be certain that Rose-Hulman still has a place for you (get it in writing) along with any financial aid that you require.