You're right, Holtz isn't nearly as attractive as he was earlier in the season. I still think he's a good coach, and can win with real talent.
They've named their assistant head coach/wide receivers coach, Dabo Swinney, as interim coach. But after the season, you can bet they'll be looking for someone new, and I really doubt they'll promote from within. Skip Holtz seems like a perfect fit to me. I'd also take a look at Bobby Johnson from Vanderbilt.