Going into that election, the Republicans had an overall majority in the Legislature and I guess were expected to keep it. Douglas's Democratic opponent, somebody Racine, pledged not to seek election by the Legislature if he failed to receive a majority. Perhaps he assumed the Republicans would keep overall control of the Legislature and elect Douglas anyway, and he didn't want Vermont to be bitterly divided over the outcome. Racine led in the polls throughout most if not all of the campaign I believe, but below 50% at least towards the end. As it turned out, the Democrats won an overall majority in the Legislature in the 2002 elections and it was that Legislature who would choose the governor if no candidate received a majority. (I'm not sure if the candidates other than the top two could have been selected, particularly if one of the two dropped out; could the Legislature have elected Cornellius (sp?) Hogan if they had wanted to?) But Racine kept his word (and he had lost the popular vote, 42% to 45%, which was, according to the Almanacs of American Politics from 2004 on, "something of a surprise") and Douglas became governor. Douglas got 59% of the vote in 2004 and 56% in 2006, so Vermont's 50% rule hasn't mattered. Howard Dean only barely got 50.45% of the vote in 2000 when the Republicans gained an overall majority in the Legislature, and as zealous as the Republican base was in Vermont in 2000, if .46% of the vote had gone from Dean to Anthony Pollina I doubt it would have mattered that Dean polled over 12% more than Ruth Dwyer and that the Dean + Pollina vote (Pollina had run to Dean's left) was over 60%. Dwyer might well have lost in 2002 though, and the Democrats might have controlled everything in Vermont right now. They probably will after Douglas retires, not that I think he's safe now.
Well, in the time I took writing this post the basic point I was making was made, but I spent to much time not to post it.