I want the Magic to have an opportunity to have the next great NBA Coach and hardly is that ever a retread coach that has had numerous opportunities. 
Age really doesn’t matter but the coach needs to be able to relate, lead and also be respected by his/her players, peers and associates. The coach also needs to be fit enough to actually demonstrate technique and get involved in practice every now and then. It’s also good if Players feel “lucky” or fortunate to be coached by whomever fills this role. 
While not required I prefer someone who has played the game, doesn’t have to be on an NBA Level. 
Must be a coach that cares about The Organization. The Pinstripes need to mean more to this coach then just an opportunity to make money and a name for his/her self. Definitely don’t want a coach that looks at us as a stepping stone to something else. 

As far as Penny: 
His a Magic Legend that will instantly have the respect of Players, Fans and people involved within the Magic Organization. 
He coached his middle school team to a state title. He coached his high school team to three straight state titles. He has lead the Memphis Tigers to three straight season of 20+ wins, They haven’t done that since 2010. Under Penny, The Memphis Tigers won their first NIT Championship since 2002. 
Some of these seem trivial like middle school and high school coaching records, but they seem like they could be the foundation in which a great coach is built upon. 
Let’s also not discount that Penny was an NBA player who played at a very high level. He can bring all of that experience and knowledge directly to our players and his words will carry weight. 
The Huge Buzz factor that Orlando has been missing since Dwight left. This team needs energy and we need to get our homecourt advantage back in strong way. What better way to kick that off then by hiring a Magic Legend like Penny. Those additional National Televised Games won’t hurt either. 
Unfortunately we are not competing for a Championship right now; so it’s the absolute perfect time to give Penny a shot. This is the moment when you swing for greatness not when you’re an established team knocking on the door of the finals. At that point experience does matter a little more, but right now we can go for the home run instead of just trying to get on base. 

Kenny Atkinson I think it’s going to be hard for any organization to pry Kenny Atkinson away from the Los Angeles Clippers. Steve Ballmer took over the organization with the goal of turning them around from a laughing stock into a consistent Contender and if he feels like Kenny Atkinson is a key component to that plan then he’ll pay him whatever he has to in order keep him on Ty Lue’s staff. 
Far as Atkinson joining Penny in Orlando, I think it is possible but kinda unlikely. People forget that the Wizards have two stars and a coaching vacancy. If the Wizards were able to somehow get a free agent like Reggie Jackson or attract somebody like CJ McCollum to add to Westbrook and Bradley Beal; all of a sudden the Wizards are legit contenders in the east. I believe that’s a situation  that would be attractive for Kenny Atkinson if he did leave the Clippers. 
Stotts may be the last candidate to get a job or be considered for a job, so he would more likely to take a lead assistant job. Not being able to win with players like Dame and McCollum is kinda of a red flag. I will say that the GM in Portland did him no favors and completely threw him under the bus