Let me cut off the "It's standard to have five years of contract out in front so it doesn't affect recruiting." BS off before it even starts. Because everybody knows that a coach can and will be fired regardless of how much time is left on his contract, with the remainder being bought out. So regardless of what Riley does or doesn't do, having a "guaranteed contract" for five more years doesn't even guarantee he will be around 2016 Spring Practice.
That being said, I think they should keep Riley for the rest of his contract, but it isn't necessary to sign him up for any more if people aren't comfortable with the present situation.