If the money weren't a factor, I would definitely prefer Hodgson. I am not pro-Hop by any means, but if I were arguing the Pro-Hop side, I would say:
Winning conference coach of the year his first two seasons at Washington is pretty impressive, particularly winning it in a year where he failed to even reach the tournament.
He was always a good recruiter in the past and had some big recruiting wins at Washington as well. Maybe he's lost his touch but I think you could convince yourself that he'd still be a good recruiter for us.
Maybe most importantly, he's had time post-Washington to reflect on what went wrong, time on NBA benches to broaden his philosophies and hopefully evolve from the coach that he was his first time as head coach.
That last point (as well as the financial backing that Bulldog referred to) are the two big keys to whether or not he can succeed if he becomes our next coach. I think you'd have to be out of your mind to not be skeptical, but that kind of financial backing can cover up a lot of mistakes (at least in the short term) and potentially give us the kickstart we need to return to relevance.
Obviously follow up question is: "So we invest a ton the first couple years and let's assume it goes pretty well...what happens after that?"