This is what Top Flight means to me... Even though Alabama was a mess, Nick Saban, who had coached a National Champion team at LSU, and was the current Miami Dolphins head coach, couldn't say no to an offer to coach at Alabama.
I don't care what condition they were in at the time, because when Saban took over they were just what you described... they were a mess, and should not have been attractive to a guy like Saban.
So you can say Alabama was a mess, which made it difficult to hire good coaches (hence them settling for an offer to Riley), how did they land Saban? They weren't relevant at all...
Now to your point about Riley's age, I do agree that hiring a 61 year Mike Riley is definitely a risk... It may pan out, it may not. And because of his age, I also agree that the odds of another top flight school hiring him was minimal... We will know in 3 years or so if this was the right hire.