From that Washington Times piece on Steele:
Other Republican Party officials said some Republican National Committee (RNC) members, including state party chairmen, have mounted a move to have Mr. Steele succeed Mr. Mehlman.
But they said that President Bush’s political adviser Karl Rove, who is Mr. Mehlman’s mentor, would rather see Mr. Steele serve in the president’s Cabinet, perhaps as secretary of Housing and Urban Development. These officials said no one has actually offered Mr. Steele either the RNC post or a Cabinet post.
Not that he’s looking for my opinion, but… RNC chair vs. HUD secretary? EASY. Didn’t we want to can HUD back in the day, anyway? But run a large mess of a bureaucracy or be a prominent, stereotype-breaking, historic face — with the potential to drive the left mad — of the Republican party during a presidential cycle? Hmm. Hard.