I would think surely his people and counselors are telling him to stay in. After last night, it’s clear that he needs to stay in until it’s one on one with Romney.
It would be good for Romney also. If he can beat Newt one on one, he can beat Obama. It will be training for Romney.
On the other hand, Newt will win the election, because no one has been paying attention yet. Only .6 of the electorate has voted. Only a handful of delegates decided.
It would be interesting to see where the votes would go in a one on one contest. I think it looks like Santorum, Perry and Newt are all drawing from the same pool. The Ron Paul pool is a different thing. Even if he drops out, I think most of his Paulestinians will just write him in as a protest and the votes will be lost, in effect going to the community organizer street agitator.