It's too complicated for me to explain here. The bottom line is that I think everyone involved is an a--hole. Davis clearly needs to go, but Arnie is an idiot. Nobody deserves to win this one.
The job probably belongs to Diane Feinstein, but she ain't running.
If you are seriously curious why I think this way, go take a look at George Will's column. You can get to it off Matt Drudge's website.
I'll put much of his seemingly conflicted positions on Maria. Keeping her on board and working on his behalf has probably meant a few PR consessions. But he won't sell-out what he believes.