They didn't want him the first time around when he won a NC and since then, he's made some highly visible questionable coaching calls. What would make you think they'd want him now?
Ah, the famous "Michigan Man" theory: FACT: The only Michigan coach who ever mentioned getting a Michigan Man to coach the Wolverines was Bo Schembechler, when Lloyd Carr became coach. Bo is no longer with us. FACT: Michigan's first great, iconic coach, who built the foundation for the most successful program in college football, was Fielding "Hurry Up" Yost. Yost played football at WVU and Lafayette and was hired away from Stanford to coach Michigan. FACT: The next great, iconic coach in Michigan football history was Fritz Crisler, who played at Chicago under Amos Alonzo Stagg and was hired away from Princeton. Incidentally, he brought Michigan's famed winged helmets with him - from Princeton. FACT: Michigan's third icon, Bo Schembechler, played at Miami of Ohio under (GASP) Woody Hayes and coached there too. And the four most prominent chosen from within "Michigan Men" to coach the immortal Wolverines? Harry Kipke, who was fired to make way for Fritz Crisler; Bump Elliott, who was "promoted" to asst. AD to make way for Bo; Gary Moeller, who was canned for embarrassing the university; and Lloyd Carr, who was "retired" against his will to make way for Rich Rod, another West Virginian. There has never been a coach promoted within the Michigan ranks who wasn't "moved out", if not fired. So much for the vaunted "Michigan Man". It's a myth, just like the talk of Les going there. (especially now)...
If Dick Rod doesn't win, I can see Michigan looking for a new coach just not Les Miles. They had their chance the first time around, and passed on him. Since then, Les' stock has dropped.