Two things:

1) Is the Punt Returner's logic the same as the Kick Returner's logic? It seems punt returners will run to the outside, but kick returners just run straight up the gut every time. Maybe the kick returner logic should be the same as the punt returner logic.

2) The wedge seems to move too far back before turning around to block. So, the kick returner just runs by the wedge instead of the wedge opening a lane for him to run through, he just runs past them. Maybe the should form up sooner to be able to start blocking before the kick returner gets to them...

This has been mentioned a bunch of times, I'm sure it's on the list.

Yes, it is - and believe it or not, the logic is the same, I think the issue though is like you said - the blocking on kick returns is too close to the returner, so the returner has more options to stay behind his blockers than he does on a punt return and so it taking them instead of doing what he tends to do on a punt return. I will first try changing the blocking logic and then see if that improves his decisions, failing that I'll look at the returner's logic again.