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For one thing, 49.5% is not exactly an impressive victory in '02. He has little or nothing to show for two plus years in office and he's not going to get much of anything, and he knows it. Okay, he has replaced a pile of crappy Democrats in patronage positions with Republicans slightly younger and more crappy. He has also pissed off the Bill Weld portion of his party, which was inevitable.
Kerry Healy has been gussied up to run in '06. She's still fairly shallow- but nicer- and pointless to elect, a kind of lesser (if such a thing is possible) Christine Todd Whitman figure. The hope is evidently that she contrasts well with Tom O'Reilly/Bill Galvin and can win liberal voters who abhor the Old Guard conservative Democrats.
There's nothing for Romney to do in Massachusetts. The Legislature controls the budget, there is no meaningful Republican talent on the bench for any tier of Massachusetts politics, there's nothing he can do about gay marriage legalization- the '1913 law' will probably be overturned or repealed in a year or two or three, and that exposes the federal DoMA fatally (though some other state(s) may legalize in the meantime without such a restriction, and expose DoMA too).
So he's running for Pres. Not that he's some kind of wonderful candidate, but he's the best alternative they have to Jeb "my kids are on drugs and Florida Is Corruption" Bush and Rudi "have I told you about my mistress and that I'm Skeletor on Cialis?" Giuliani.
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