I agree with you. He and his staff have brought Butler to a higher level. You have to think his phone (or his agent's phone) will ring in a few weeks. That said, he's done so well, and Butler has grown so quickly within the Big East, that he's in a position where he's already in a top job. NC State, Illinois, frankly might be steps down now at this point. OSU, unless they switch course, have already thrown support behind Thad for next year.
Similar thoughts here. If Butler was still in the Horizon League I would definitely see him moving on. But they are an upper tier Big East team and a school that has chosen to make men's hoops the primary face of their athletic program (meaning no FBS football to compete with). There is no ceiling for him there in my opinion and I won't be shocked if the Bulldogs are the only team from Indiana to make it out of the first week of NCAA tourney action.
He may be wise to keep building up Butler until a dream job opens up. Places like NC State, Illinois etc. while usually good and with championship banners hanging in the rafters, are a major career risk right now IMHO.