I think the situation has become precarious with Capello resigning.
The expected timeframe for this would have been for Harry to see the season out, Capello see out his contract, England to have a mediocre European finals then a fresh start for everyone come August, invigorated after their hols with a new broom (Harry) sweeping clean.
IMHO the court case (with no little involvement from the press) may have dampened Harry's enthusiasm for the job. He will know more than anyone that he only needs 3 out of 5 results to go against him in his first year in charge and he'll have the press swarming all over him.
He'll rightly take a little more time to consider his future and whether or not he wants all the aggro of the 'hardest job in the world' and the media circus that goes with it at the age of 65.