Senator Evan Bayh's "retirement" is the result of a dysfunctional, partisan Senate (so what's new?). Of course, that is not the real reason he is leaving. It is in his best interest to not be associated with the progressive democrat's corruption which promises to bring conservatives back into power in 2010. He also surmises (correctly) that Obama will not run for reelection in 2012 (the Jimmy Carter effect). When this occurs, the way will be clear for Hilary versus whomever in the democrat primary.
Bayh rightly senses that the country will be both anti-liberal and anti-conservative when Obama completes his term. His supporters believe that there will be no liberal of substance that could win the presidential election after the current progressive failure. The conservatives will be seen as the party of obstruction, so the republicans will not be able to produce a viable candidate. Therefore, as a young, successful moderate with deep roots in politics (his father, former senator Birch Bayh), it's only logical that he will be embraced by the angry voters waiting to dump on someone. Another point in his favor is that he doesn't come from the east or west or Texas; he's from main street midwestern Indiana. He represents those whose livelihoods have been taken away by unfair, corrupt trade policies over the last 20 years. Another thing that helps is his $13 million of unused campaign funds, which will be put to good use.
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