Before the GF stuff came out, I was firmly driving the Te'o to Steelers bandwagon. We need some new blood, some difference-makers on a defense that lacked them. He seemed a face-of-the-franchise type. Fast forward to the GF stuff, and I washed my hands of the thought (of drafting him). I thought that the GF stuff was a glaring red-flag as to the guy's character, as a deceptive, strange guy.
To today: At this point, I have put my faith in the FO in that if they were to take him, the issues related to his character would have been thoroughly researched and dismissed (i.e. basically, that he is an extremely naive kid... which is no crime). It does seem like the media has discounted the episode as such too.
Now as a player, he is still not without flaws. In an increasingly passing game, he is never going to be Jack Ham as a cover LB. So even at his best, at some point probably sooner than later, you're going to have to pull him on obvious passing downs... essentially making him a 2-down LB. And... the last memory we have of him on the field is stumbling around, trying to evade blocks (which he didn't) and corral Eddie Lacy (which he couldn't).
But in the end, no one can doubt his awesome production at the major D1 level. If you remove the GF drama completely, how can a team with an apparent hole at ILB, overlook possibly the most productive ILB in recent college football history.