I'm just old enough to remember LBJ withdrawing from the 1968 Presidential election, opening the door for Richard Nixon to become the next President. His reasons were pretty clear, he had bet his presidency on Vietnam and lost. The war was getting worse, and would get worse-still.
Obama is so deeply mired in this mess with the deficit. Perhaps the best thing to do is resign himself to being a one-term President and let the Democrats nominate someone else, who can run on a different platform. "I'll kick ass for the voters," instead of what Obama would have to run on "I sold out to the Republicans." Then 2012 can be a referendum on whether we want to turn the country over to the chaos that the Republicans have wrought, or fight back.
We're getting close to the point where the kindest thing the President could do for his country is to become a lame duck. Not quite there yet. But the next few weeks should tell. If he lets the country default, there's no way he gets re-elected. We're going to need someone really strong, with great leadership skills and someone who can say no to the Republicans in a way that they get the message.
God forbid he doesn't move aside, we could be singing Hail to the Chief to President Romney.