With one year left on his contract, who would come to and play at BYU for a coach in that situation? Therefore, either you let him go at the end of this year, or your offer an extension. But, is Kalani deserving of an extension? Well, not based off job performance.
So, its easy to say just have him finish out his contract. But when you consider the effect that likely will have on recruiting, and on a team essentially playing for a lame-duck coach, you can't really keep the guy.