ABC wouldn't let Kathy Griffith within a fifty mile radius of a live show as popular as the Oscars.
I think Fey is really the best choice though she is one of those anti-"Hollywood" actresses (much like Jon Stewart) who may just feel awkward hosting the event. Her writing would be so incredibly sharp, witty, and out of the world though, plus she is used to writing jokes about actors and show business in general (if you haven't seen 30 ROCK, shame on you!).
Please no Chris Rock, I absolutely hated him as a host.
Just get Meryl Streep. She's funny, classy, and everybody loves her.
"Some people can thrive and bloom living life in a living room, that's perfect for some people of one hundred and five. But I at least gotta try, when I think of all the sights that I gotta see, all the places I gotta play, all the things that I gotta be at"