Kelly has done very well, and the decision as to whether he should be appointed full time is a very tricky one. He could be the next Billy Davies and if appointed go onto to become an excellent manager for Leicester, but also remember he is in a honeymoon period, nothing to lose and everything to gain, and with most managerial changes you tend to get a positive reaction very early on. It would be a very big risk to appoint RK long term on the back of 2 victories, please bear in mind that we are talking about in comparison appointing manager's with proven records over 100's of games.
Newell on the other hand is a proven manager with a good track record, and therefore appointing him would be the more sensible option, but who is too say he will have the same positive impact on the squad, Kelly does seemed to have unearthed a new found togetherness amongst the squad, would an outsider like Newell be able to maintain and build on that.
The decision is an extremely difficult one for the board, however IMO we should appoint Newell, as he is proven and is a very good, young and upcoming manager, whilst Kelly is unproven, however should the move for Newell fall through, rather than make a panic appointment then RK should then be appointed to the end of the season and then the situation revaluated at the end of the season.