Should he sign up for another 2 years, as he is expected to, it would be good for two reasons. Firstly he is a great manager, and we need to keep him. Secondly, it shows that he believes he can take Everton forward.
If he thought that last season's 7th place was the best we could do, he wouldn't hanging around, not when more or less any team in the Premiership would be after him.