Yes that’s right. The first syllable of “coyote” is “KAHY,” no? What does that have to do with “KYOO”?
Or, if we need to do this in IPA: /kaɪ/ vs /kjuː/. They’re not remotely similar. 
The coyote pronunciation thing has actually come up before: Although it focused more on the second half of the word. There is variation in the first part too, but TBH whenever there’s a vowel involved you can guarantee that not all English speakers pronounce i the same way.
nm
I was actually confused by elfkin477’s original post, which said
In my last response, I didn’t realize he was the one who made this statement, so I thought I was sharing in his confusion. What I thought I was responding to was the confusion over how the first syllable of “coyote” could sound like “cue” or “coo.”
When I lived in New Mexico, the first syllable of “coyote” was commonly “kai,” rhyming with “sky.” I think I have also sometimes heard “khay,” rhyming with “pay,” but not very often.
COO-pon for me & most folks I know. KYEW-pon sounds like an affectation. Seriously people, if you want to use an affectation, use Ron White’s coo-P’n as shown up-thread.
Aside:
When living in the Southwest I have heard people butcher the word “coyote” as KYO-tay where the o vowel sound is the same as in “so” or “go”.
They were usually recent transplants from the East who were trying to sound local or Spanish or something.
I checked “other” because that particular word is kind of like asking about breathing - I don’t notice it until I’m asked, then I can’t think of anything but how I pronounce it and it all sounds right! 
I tend to prefer to be descriptivist over prescriptivist but will make an exception here. 
Uh, technically the “ou” is ambiguous, as we see looking no farther than “bough”, “cough”, “dough”, “through”, “bought.” Not a yoo sound in the bunch. Can anyone show any examples of “ou” being pronounced yoo (not counting the faulty(:D) “coupon” and words like “bayou” where a “y” is actually present) ?
Three examples, all “cu” not “cou.” The mention of “educated speakers” may suggest a kinship with hypercorrection.
I grew up in NJ saying it “queue-pon” but was “corrected” so many times once I moved out west that I now catch myself using both.
Yep on both counts :).
“Queue-pon” makes me stabby.
I just read the title of this thread in GQ aloud, and I realized I naturally say /ˈkjupɒn/ (i.e. “Queue-pon”). But when I think about it, I say /ˈkupɒn/ (“coo-pon”). But since natural is probably what you want, I went with the first option.
In my neck of the woods (American midwest), it seems like the people who pronounce it kyoo-pon outnumbered the ones who pronounce it coo-pon. I grew up saying kyoo, but changed at some point. It used to bother me hearing my old pronunciation, but not anymore… I guess at some point it just seemed like a stupid thing to let myself get irritated over.
I pronounce it like…Q. I don’t know how to qualify that better because Q sounds like Q, and not remotely like the letters K and Y. How do you pronounce the word queue? To me you could drop all the letters after q and it’d sound exactly the same.