My take on this is... If I was a maize and blue fan... ok, I can't even say that with a straight face. Hypothetically, if I didn't dislike that team from up north with every fiber of my being, Rich Rod has to go. But, I don't think they thought this through. Harbaugh isn't coming, and that's a fact they need to face. The higher ups at the university, and the folks with money don't want to pay enormously for a high-profile coach like Les Miles to come.
That being said, since you and I don't have the money to pay a coach's salary, I suspect it'll be another Michigan man who will go back to tradition. That will put the program back into a 2-3 year crapfest as your offense has players not suitable for the grind-it-out sort of scheme the B10 loves (at least the top teams in the B10).
Nebraska being in your division doesn't help matters much, but I don't see the current program moving forward next year. D-Rob had some insane games, but you can't expect him to have those types of games all season.
I dunno what to say... money talks, and your program doesn't wanna give it away. Miles would be a great coach, imo. But, a huge buyout at LSU is preventing that, not to mention the fact that he's built a good program down there and probably has some loyalty to them now.