Miles was never contacted.
I agree with your point though, I don't think a high-level, proven HC looks at Michigan as any kind of Nirvana in terms of job. Who woulds stake their career on a depleted roster, a skeery-crazy fanbase, an AD with waffling support and, given the current criteria, 3 years to produce 'or else'. That is a shaky career move.
Schiano has to be telling himself over and over, 'good choice, very good choice.'
Going to have to be a Tier 2 option like Hoke, or take a flyer on someone with something to prove.