Based on what? This is the best guard duo (trio?) we've had in a long long time. Payne is special. Dawson is an pro level talent. Pitino won games by having Carr or Coffey play hero ball, but the teams never looked cohesive. This team has faults for sure, but they play well together. Give them...
The comment comes at the 8:50 mark of the video. In context, he's talking about the team that can run the ball and be balanced usually wins and that they were too reliant on the passing game. As with most statements, it makes more sense with context.
No idea. But he seemed to have the support of the team, he was starting to play some of his best basketball, and has a local support system. To just pull the plug now and transfer seems strange.