Well, he's not an idiot.. He rebuilt Oklahoma State football when that program was hopeless. Then he went on to win a national title at LSU. He's a smart guy and an excellent coach. So you can forget points 1 and 2.
Two and three are valid concerns, right on point, and the reason why I don't think he is the right choice for Kansas. He was a wide-open offense guy at Oklahoma State but got so conservative at LSU his offense became a joke. Even his recruiting for offense became a joke (24 QBs recruited while he was there, 12 pocket passers, 12 dual threat, sometimes one of each in the same year).
Oklahoma State is a bad situation when it comes to recruiting, but they are a paradise compared to Kansas. The state of Kansas doesn't produce enough good football players for one program let alone the two in the state. And when they do produce a prospect he rarely goes to either state school.
Kansas is much better off hiring someone from the Leach or Art Biles coaching tree. A guy like Babers. (Biles tree) I don't mean Babers specifically--as bad a situation as Syracuse is, it's a better coaching job than Kansas--but a guy who has shown he can find enough good athletes to produce a high power offense and allow a second tier school to compete.
Even if Miles could do what he did at Oklahoma State he would be 70 by the time he did it and Kansas would have to start looking for a younger guy again.
There are a lot of young guys who proved they can do it, including Littrell at NTSU (North Texas is actually a better coaching job than Kansas, it's just not a power-5 school), Matt Wells at Utah State (roots in Big 12 country), Heuple at UCF (played under both Leach and Mangino and did an excellent job taking over UCF, but hasn't proved he can rebuild a program).
There is a lot more talent at Kansas now than when Beatty took over so there's at least a foundation for a new coach to build on, but there are reasons why Kansas has rarely been respectable, let alone a power.