First, sounds like a pretty stupid comment since he said it could not be turned around but then said he would be able to consistently win bowl games and compete in the West. Umm... that is turning it around. We are never going to be consistently at the top of the big ten or competing for national championships.
Second, with respect to coaching searches/administration, I don't think that is a big revelation. We are always slow with respect to coaching searches due to the state of Illinois requirement to have the positions posted for so long before someone can be hired. However, I suspect the slowness now is more about Lovie taking his time and performing a full evaluation. Sometimes that might mean you miss and sometimes it just means you didn't do anything hasty.
Who knows if Lovie will be able to make it happen or not but it sounds to me like your contact might have been a bitter, babbling fool because his statements sound contradictory.