As things stand right now, I'll tell you why I think this is good for Ron Paul 2012:
1. Sarah Palin cannot win the nomination or is not running. Therefore there is no other candidate who has grass roots appeal other than Mike Pence and Ron Paul.
2. Becky Skillman, the Lt. Governor of Indiana wipl not seek the office of governor when the popular Mitch Daniels leaves. This means Mike Pence would be a shoe-in for the governorship. He would be NUTS not to run and easily be governor of Indiana.
3. If Mike Pence runs for governor and Palin doesn't run, who else are grass roots conservatives going to look to? I think many of them might take a second look at Ron this time. I see this as a net positive for RP 2012.