I understand the party wants him because he's a formidable candidate, but no reason for Pompeo to seek this seat. If Trump wins he remains as SoS, and if he loses Pompeo would be the frontrunner to challenge Kelly or next in line for Moran's seat should he choose to bow out. He doesn't need this seat to secure his political future.
Grissom is a fine candidate, especially to contrast with Kobach, but Dems would do best with a younger, female center-left moderate (who doesn't have a record of losing as an incumbent in a Dem wave) to draw a contrast with the R candidate who is all but certain to be an older white man.
I dunno, considering the... "stability" of Trump's cabinet members, maybe exiting the administration for a safe Senate seat while remaining on Trump's good side doesn't sound like a bad idea overall.