I'm a bit late replying to this column. So far, I haven't seen any response regarding the effect on students and staff. If the Chair of a department is the spouse or partner of a faculty member in the department, and if a student or staff member (or another faculty member) has a legitimate difficulty with the spouse or partner, to whom do they go for recourse?
I tend to share Molly's concerns here. I have seen a strong conflict of interest in one department I worked in where the chair's spouse wrote critical letters and put them in each department members' mailboxes of those who disagreed with her husband.
On the other hand, I have also worked in a department where the married couple had the highest of ethical and professional behavior.