He is certainly not suitable for the ego centric indian cricket. His hardline and no-nonsense attitude obviously doesn't suite our so called stars.
He is a decent coach. In his 22 months as a coach indian broke a record!
Chappell's tenure included a record-breaking run of India winning 17 ODIs while chasing, and a Test series win in the West Indies. It saw several young players, including S Sreesanth and Dinesh Karthik, breaking through into the national side to some acclaim.
Having said all that, He is better off leaving indian coaching job, it is not easy for his kinda of coaching.