This is one of the main reasons I like Mrs. Palin.
She gets it.
Most people take this phrase, and they think she's chalking the outcome up to 'fate'. Up to the 'whims of luck'.
No, she gets it. God IS in control. He isn't some helpless old man sitting out on a rock a billion light years away. HE IS, and cares for HIS people. HE might indeed take us out to the woodshed this election - but it HIS will and we know that all that HE does is good. Until then - pray for HIS mercy and HIS blessings.
2 Chronicles 7:14
If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.
God gave mankind free will. God can call upon people to do things, but they don't always obey. God may plan for something to happen, and may call upon lots of people to make it so, but that doesn't guarantee that it will get done. Part of the consequence of giving mankind free will is that the it won't always behave as God would like.
IMHO, it is very unwise to suggest that something like the election is "in God's hands", since such a statement may encourage complacency by those who would see the result as being fate. If everyone whom God calls upon to defeat Obama joins in doing so, Obama will be defeated. If none of them do so, Obama will win. Ultimately it will be the people, not God, that make the final decision.