Dogjaw - When you make a short barreled rifle, you have to first get permission from Uncle Sam by filing a form 1 (application to make an NFA weapon) and pay a $200 making tax. If possession of the short barreled rifle would be in violation of any state laws, BATFE will not approve the application to make. Additionally, unless you make or buy the weapon as a corporate asset, the form 1 requires the local CLEO (Chief Law Enforcement Officer) to certify that they have no knowledge or information that your possession of the weapon would violate any local laws.
I don't know MI law, but if the section you reference is MI law, than it mirrors the federal law. Many states do. But most states also have an exception in the law for those short barreled rifles, machineguns, etc. that are properly registered with the federal government. Again, I don't know MI law, but there may be such an exception in MI. You may very well be able to mount that Savage Striker in a stock IF (and only IF) you first get approval to make an NFA weapon from the NFA Branch at BATFE by filing a form 1, paying the $200 making tax, and receiving an approved copy of the form back from BATFE/NFA.