The Times is reporting she has withdrawn her bid,supposedly because of her uncle's health. I imagine though it had more do to with her media reception and the cold slap of reality of being in the public eye.
It could mean that the openly gay assemblyman Daniel O'Donnell might just have a shot. That kind of history-making is something the pro-gay Governor Paterson just might do, I think. But he also likely would want someone who will boost him in his own run in the same year, as Kennedy would have, in terms of bringing money in and bringing people out to vote. He'll probably choose Andrew Cuomo. He is apparently going to announce it on Saturday.