Here's the thing about Harbaugh, he is what Michigan needed. They'd let a proud program fall into disrepair, and the biggest thing their football program has been involved with in a long time was losing to an FCS team. So, a brash, loud mouth, Kiffin type like Harbaugh has helped remind them that they're better than that. Furthermore, he's actually not a bad coach. He's competent enough to back his talk up some.
But, let's not fool ourselves. He's nowhere near owning his own conference, let alone college football. He's well behind Urban Meyer, and in terms of a list of top coaches? There's Nick, Urban, then you have Jimbo, Dabo, heck even Les Miles could lay claim to being a better college coach. He's a couple of championships away from being compared to Urban Meyer, and a long, long way from Saban.