I think Grobe would be a great hire for them. Job #1 is rebuilding the integrity of the program. Grobe's integrity is unmatched. Secondly, it is really hard to follow a legend. In order to do so, I think you need a veteran coach with a thick skin. Again, few coaches fit that bill better than Grobe. Given Grobe's age. He could coach there 5 - 8 years and pass the baton to a younger man who will not be in Paterno's shadow. I think it would be a great hire for PSU.
A Deac fan told me a story once. . .this is second hand, so I my be getting some of the details wrong. The story goes that this fella was listening to an interview Grobe did with Mark Packer when he was on WFNZ. After the on-air segment, apparently Packer asked Grobe if there was one school he would leave Wake for, what would it be. Pack Man did not air divulge the answer on air. However, this Deac fan e-mailed Pack Man and he divulged the answer in his response. . . Penn State. So, the story goes. . .Penn State is Jim Grobe's Dream Job.
I have also heard JG say that he has one more move left in him. . .
As for his replacement, I suspect that RW would stay in house. Lobo is probably the most likely candidate. I don't know whether he would be a good HC or not. What I do know is that recruits and their parents seem to love him and he is smart as a whip. I suspect that if he was HC, we would have a more wide open offense than we have had under Grobe.