We'll never know who won the 2004 Gubernatorial election. Our election procedures aren't exact enough to determine a winner when the margins are that small. Fortunately most Republicans within the state have come to accept that, and these days the only Republicans I really hear complain about it are those who don't live in the state and generally don't know what they're talking about.
Anyways, a Rossi victory this year would certainly be terrible, but nothing bad would necessarily happen. It's just that nothing will happen. The Democrats have large enough majorities in the Legislature to stop any of the crazy things that Rossi wants to do, and strategically the Republicans just don't know how to get things done in the Legislature even if they did get a larger caucus.
However, I suppose nothing happening is better than bad things happening.
This is true. If the democrats win any more state house or senate seats they may even be able to override Rossi as governor. But still with Gregoire things would move so much more smoothly and I wouldn't have to go to bed at night knowing that Rossi is my governor.