There seem to be two distinct schools of thought here.
Short-term, do anything to preserve PL status camp. Hence the Sherwoods, Hoddles, Redknapps, etc.
Longer term, short term risk. Hence the Klopps, Tuchels, Nevilles.
Personally I can see no benefit in giving someone like Sherwood a two year contract. That's definitely not the answer, and will mean we'll be having this exact same conversation in 18 months time.