People don't tend to like a sore loser.
As Gerry Malone - who had a much better case than Watkins - could tell us. Admittedly he was/is a totally unsympathetic prick, which probably didn't help much.
True, but don't forget this is a three way marginal and Labour have no money.
Labour will get Short Money now that the Party is in opposition; I'm not sure when the first payments come through though. Any by-election would also be after the CSR. Of course Labour would also loose Woolas's sizeable personal vote.