He admitted to the affair before the DNC, so I think party leaders would have pressured him to drop out and let the convention nominate someone else. His favorable numbers were in the teens following the scandal, if I recall correctly.
If Edwards stays in, McCain plays it safe and picks Pawlenty. Edwards, desperate to try and win back the female vote, is able to convince Stephanie Herseth Sandlin, an early endorser, to join the ticket in an effort to shake up the race. Herseth Sandlin is able to help with women but many progressives felt the ticket was too moderate. Initially the race looked like it would approach a 50-state landslide, but Edwards is able to somewhat consolidate the Democratic base after the economic crisis and is able to win Democratic strongholds. McCain still wins in a landslide.
McCain/Pawlenty: 424
Edwards/Herseth Sandlin: 114