It's stupid to completely dismiss the Pearl to Iowa rumors. Just because he turned down the job a few years ago doesn't mean he would turn them down again. Here are the reasons why this could happen:
1. The Iowa basketball job is a better job than the Tennessee job. Iowa has at least some tradition in comparison to Tennessee. The Tennessee job was treading water (to be nice) before Pearl came. NCAA Tournament victories aren't even close between the two schools. When good coaches have coached at Iowa, they have won (Lute Olsen, Tom Davis, and even Alford to some extent). Don't get confused by recent success versus real success.
2. The Iowa AD is desperate. Gary Barta can't afford to hire another mid-major coach. He'll go for the big fish because Iowa fans have spoken with their attendance and Barta knows it will take someone of Pearl's magnitude to bring fans back to seats in the arena. They have to have someone they can sell from a PR standpoint that will help them avoid the nuclear winter type setting that was evident at their games this year. Barta will hand Pearl a blank check and make him say "no" at least 3 times before he gives up and moves on to Stallings or someone else. And with Big Ten Network revenue and boosters willing to pay buyouts, there's money to be thrown around. If Notre Dame can buy out Charlie Weis, Iowa can afford to buy out Lickliter and pay Pearl. Iowa's athletic department is 15th in revenue nationally, ahead of ND.
3. Pearl's style works in the SEC, but it isn't unique there. In the Big 10 (where the 1st team to 60 every night wins), Pearl could rule the conference because no one else is equipped to play that style night in and night out. Iowa has to find a niche system (like Pearl's) because it can't run the same slow systems that Ohio State and Wisconsin play and compete. Those teams get better players, so they have to have something unique to sell kids. Pearl brings that. And I'm sure Barta will tell Pearl more than once that his style can revolutionize Big Ten play.
4. Pearl's staff is chock full of guys with Iowa connections, having either coached, played, or grew up there. Not something to be underestimated.
I'm not saying it's going to happen. But to say it absolutely won't is a little ridiculous.