He is a major league RINO, but at least he is from outside politics, and is a proven executive.
The current incompetent and unpopular RINO governor is dead meat, without question. Unless Romney runs, the next governmor of Massachusetts will be Robert Reich, or one of the more devious local political democratic hacks.
This being Massachusetts, Romney is definitely preferable to anyone else running.
Maybe it sounds nuts, but here's a few examples: pro-life dems running and beating pro-abortion Republicans in Boston, a new Dem Rep from Maine (going to replace Baldacci in 2002) who will win, who is pro-life and pro-gun. The Dem speaker of the Mass. House is anti-gay marriage, pro-life. (When Ted Kennedy retires, please let this guy take his place!) The Democrat who lost to Lincoln Chafee (RINO-RI) in 2000 for the Senate was also pro-life.
On the other side, you have the super-liberal Republicans in Mass., RI, Vt., and only slightly better ones in Maine. The Republicans in the Northeast have become more liberal than the next generation of Democrats.