There is still some hope. The complainant's charges against Treon Harris have been dropped, and the CleatGate was resolved quickly.
Also keep in mind that the world looks very different to you and me compared to Jeremy Foley and other athletic directors. The athletic directors at traditional and new football powers Florida, Texas, Michigan, and USC do need their big money sports teams to win games, but more importantly, they need the teams to keep them out of trouble with NCAA. NCAA bylaws are so crazy, that there is a game within the game on how to deal with the NCAA. The key point is that Will Muschamp has cleaned up the program, which essentially buys him a 7-win season. As long as Harris does not jeopardize the football program's standing with NCAA, Muschamp is still on a path to be the Gator head coach next year if he wins 7 games.
The extra "rules for keeping Muschamp"--beat Georgia, beat FSU, win the SEC East--are purely rules set by fans whose votes do not matter. The "talk" between Foley and Muschamp probably focuses more on keeping out of NCAA trouble, controlling the number of arrests, and increasing buy-in from investors (boosters, season ticket holders, etc).