From a performance perspective, I can see how it seems off since the UM team is "underperforming" this year. However, they've had quite a bit of roster turnover, the team is really young, they lost their big man for the year and possibly his entire career, etc. Talent-wise, Beilein inherited then-recruit, now-junior Manny Harris (btw, his sister plays bball for Marquette) and then-freshman, now-senior DeShawn Simms from the previous coach and that's about it. In that way, I think Beilein has a longer leash and the administration is willing to be patient.
From a broader perspective, the basketball facilities at UM are horrible. They're finally building a much-needed practice facility to open in 2011 and plan to renovate Crisler Arena as well. It's assumed that these were promised to Beilein when they were courting him, but those projects have been delayed at least twice. In this respect, Beilein has been very patient with the administration.
And of course, UM football is currently being investigated by the NCAA and Rich Rodriguez has been controversial to say the least. Beilein has been the opposite - he's brought in good students and is generally well-liked and respected by the administration and the boosters. When all these factors are considered, the contract extension isn't all that surprising.
