This chance, plus the opportunity cost of the Lions going 3 and out and needing to settle for a long FG (which if missed would give the Chiefs phenomenal field position down 1 point) is why I'd be happy if McDermott/Dorsey coached the same way in this situation.
The Chiefs would have needed to stop the Lions in 3 plays regardless of where the ball was on the field. So let's play it out assuming the Chiefs make the 3 and out happen (which they don't anyway because their front 7 is atrocious)
Option 1: Go for it on 4th and 25 and don't make it. Lions go 3 and out and then attempt to kick a ~45-50 yard FG to go up 4 points with the caveat a miss would give you great field position down 1 point. Lions kick the FG and make it, Mahomes needs to drive ~75 yards for a TD with 1:30 left. Pretty doable as we have seen.
Option 2: Punt the ball to the Lions instead of going for it. Lions go 3 and out and then punt. Chiefs have the ball on their 10-20 yard line with ~1:20 left down 1 point. Also pretty doable.
Either way, if your defense does what it is supposed to, your hall-of-fame QB has a chance to win you the game.
In the situation the Chiefs were in with the QB they have, I don't think I would fault them either way. The game was lost due to execution of the Chiefs receivers (throughout the game, not just on this drive).