I see college football programs in tiers.
Michigan isn't a Tier 1A school where you're born on third base, but that's probably limited to Alabama, Ohio State, and Georgia. Those three have the infrastructure in place where I think most warm bodies could be the head coach and go 10-2 or better. It's just a machine in need of a figure head. They should compete for a national championship in the 12-team format every single year.
But I would put Michigan in the next tier, 1B. The infrastructure and money is in place where you should be very competitive every single year. 9-3 should be the floor, and it shouldn't happen in back-to-back years. And you should probably seriously compete for a national championship at least once every 3-4 years. In the modern format, this probably means qualifying for the playoff at least every other year and advancing to the semifinals every four years. I'd also put schools like Texas, USC, Notre Dame, Oregon, LSU, Texas A&M, and Oklahoma into this category. Clemson will probably eventually get here too.
And then below that is Tier 2, who should have a legitimate shot at a national championship once a decade, but whose realistic ceiling year-in and year-out is probably 9-3 or 10-2. This is where I would put places like Ole Miss, Florida, Auburn, Missouri, Tennessee, Florida State, Miami, Penn State, Michigan State, Washington, and Utah. Maybe Iowa, Wisconsin, and Nebraska too, though all three of them are weird in their own ways.
Tier 3 encompasses the programs that can maybe catch lightning in a bottle, but probably don't have the institutional supports in place to sustain it over a longer term. Most of the ACC and Big 12 fits this mold, along with places like Vanderbilt, Kentucky, Illinois, and Minnesota. You get the idea, it gets worse from there.
I think there are a'plenty of coaches that would gladly take a promotion from Tier 2 or Tier 3 programs to Tier 1B. Likewise, in a vacuum, Michigan is arguably a better job than say LSU or Texas A&M, who is Tier 1B but thinks they should be 1A. In the same way Washington and Utah are probably better jobs than Penn State and Miami, who are Tier 2 but think they should be 1B.
But people don't exist in a vacuum. Kenny Dillingham may prefer to stay home at Tier 3 Arizona State. LSU may back up a Brinks truck to hire whoever their donors want. [Insert Candidate Here] may not love not knowing who the AD and President will be in year two, even with a Tier 1B school... And Michigan is not going to poach someone from an equal or greater-footing school (i.e., Freeman or DeBour) unless extraneous factors make it possible (i.e., folks with torches outside DeBour's house, instability in South Bend).