Tiger,
You've already hired the guy, so much of this is moot.
At the top golf programs, do the kids (and their parents) really want extensive instruction? Most of the players have their own teachers, some since they were very young.
I think that having a coach who is a good instructor as well should be a plus, provided that he doesn't have a compelling need to teach and meddle. A good set of eyes for keeping the kids consistent within their fundamentals is great. Much more than that, it could be counterproductive.
How well a coach plays or played should not be part of the equation. Unfortunately, to some of the kids it seems to mean a lot, perhaps a prerequisite for consideration to earn respect.
Personally, I would value more highly the candidate's knowledge of the game and his integrity; a consistent, level, positive personality and public demeanor; a strong work ethic; and a vision that's optimisitc but grounded in reality.
I have never subscribed to the adage that if you can't do something, you teach it. In this case, teaching is probably one of the lesser responsibilites. Hopefully, LSU does not have remedial golf classes for its team members as it might in simple math and english for some of its other athletes.