Michigan, Pennsylvania, Oregon and New Hampshire are all close and were all states won by Kerry last time around. I'd say we at least have a "prayer" in all of them even though we aren't favored to win any of them.
I'll agree with you that Obama should be the favorite right now. He has a lot of structural issues working in his favor. McCain is hanging in right there with him though and there is still a long, long way to go.
Incidentally and inspired by your nom de plume, I wish Newt had come back, at least in an organizational role, if not on McCain's behalf, then at least on behalf of the Republicans in the House and Senate. We need someone somewhere to nationalize this election. In another thread, Gallup says that the Congress is down to 31% approval, and any yet another thread it says 9% approval. The House and Senate races are just begging to be nationalized and if we don't do it the Democrats certainly will and they will sail to a wholesale victory where the slaughter will be painful to contemplate.
It seems to me, that nearly everyone sees the disaster coming for senators and congressmen, so it requires a stretch to believe that McCain can reverse the numbers at the top of the ticket in this climate.