This is GREAT news for Ron Paul. It means his vote percentage will go up in pretty much every state, he will have a LOT better chance to win his first caucus state (like Washington), and he will pick up more delegates in the remaining states, and in the states that already voted but don't pick national delegates until later -- some of those numerous Ron Paul alternates might get a chance now.
It's probably even better news for Huckabee. The press is writing him off, but they were wrong before Super Tuesday, and they will be wrong again. Huckabee will most likely win Texas (trust me, I used to live there), with a ton of delegates, and the anti-McCain vote will mostly go to him.
I'm not sure who is worse (McCain or Huckabee), but Romney dropping out definitely helps Ron Paul -- he was our main competition in the states the other candidates weren't organized in.