First off, I think KOK would make a pretty good head coach. I think he has a tremendous football mind, but pretty much has his hands tied with this offense that he is forced to run. I think he's pretty poor at playcalling when he's forced to make adjustments from his original game plan. But as a HC, he would be able to hire someone else to do that.
Here's the deal though. I don't think that KOK is a legitimate candidate for the Indiana job. But I think he is ready to move on to a head coaching position. We all know how these things seem to work. Ferentz gets Indiana to fake interest in KOK. Maybe even gets him an interview. IU hires someone else, but they've done a great service to KOK by getting his name out there. He then gets a job at a MAC school(or equivalent).