I think that is probably the best available coaching gig out there, so I don't blame him. They have a young potential superstar PG, one of the best defensive centers in the league, one of the better defensive SF's in the league, a bunch of cap room, and another movable contract (or valuable 6th man) in Hinrich. With the right moves, they could very well become contenders as early as next year.
Of course, I would prefer McHale didn't get the gig, since I would prefer him either on TV, or taking over for Doc if he leaves.