Anyway, here's the full announcement "drop out" story. He has stayed mum, at least in this article from talking about re-election or not. I suspect he's waiting until his wife's state Senate race is over.
http://www.csmonitor.com/2007/1026/p25s01-usmb.html
The guy is simply an brilliant political strategist, if nothing else.
Look at the NRCC's 2000 track record in open seats. Davis masterminded the GOP's narrow wins in FL-08, MO-06, MI-08, and IL-10. He also spotted the vulnerability of Democratic incumbents in CT-02 and MN-06. His attention to detail and his penchant for modesty, the former of which is shared by Karl Rove, the latter of which is not, are unparalleled among GOP strategists. If I were a Republican incumbent with a tough reelection challenge, I'd put Tom "Every election cycle is like 1992" on hold, and call Rep. Davis for advice.