As long as he isn’t using it as a stepping-stool to the Presidential nomination (as is in abandoning his job after 2 years in), and for lack of any potentially strong candidates, I don’t see anything overwhelmingly wrong with letting him take a shot. But I find it doubtful he’d be facing Paterson. The Dems would have to be insane to permit someone with such toxic approvals to run (and frankly, the Dems are far better with taking out people that are sure to lose the general than we are).
If he gets in he will be a better NY Republican that the Austrian has been a California Republican. Talk about damning with faint praise — actually I am a bit more enthusiastic about the idea than my first line indicates.