The relationship fracture between Harbaugh and the 49ers, by itself, is enough to give any NFL club pause before taking Harbaugh on as a head coach anytime soon. His success at Stanford prior to joining the 49ers, plus his 5-1 start in his first year with the Wolverines, suggests he is better suited for the college ranks. Harbaugh's personality clash with the 49ers shouldn't be as much of an issue in college, where the annual roster turnover of roughly 25 percent ensures the former Wolverines quarterback will be around a lot of new faces, building new relationships, on a constant basis.
As the report notes, Dolphins owner Stephen Ross attended Michigan and wouldn't want to disturb Harbaugh's quick revival of the program.
Beyond that, the optics of Harbaugh, one of Michigan's favorite sons, bolting after one season would be awful. He's one of the highest-paid coaches in the college game, he's in an environment where he can thrive, and he's already winning.
The question, as much as why the Dolphins wouldn't want Harbaugh, is why Harbaugh would want to leave.