The situation is admittedly a strange one but I don't see why JH would not retain Steele and let Steele get his guys on defense.
Yes, I know Steele was hired by Pruitt. Yes, I know Steele is, rightly or wrongly, blamed for some palace intrigue with getting Malzahn shown the door. But, Steele obviously knows the higher-ups hired White to straighten out the AD and White hire JH and worked with JH at UCF and so Steele trying to curry favor with the administration or the AD simply won't work.
And so, JH is in with his boss and Steele cannot feasibly get between JH and White. Steele coached very good defenses at Auburn. He knows the SEC. He can recruit the Southeast. He can probably get Garner to be the DLC. He has connections to get other high quality defensive assistants. He's already on payroll. It just makes far too much sense to keep him unless JH can land a more proven DC than Steele and I highly doubt that given how good Steele is and the uncertainty at UT.