Now that Mitch Daniels has announced that he will not seek the presidency (and enough time has passed to digest that news), I'll say that it would have been better for the GOP if he had. His decision to place his family's needs over his political ambitions, ironically, was the final proof that he was a candidate worth having.
That said, there are 6.5 million people in Indiana, and Daniels can do a lot to improve government for them as an undistracted governor over the next two years. And when January of 2013 rolls around, he will be looking for something else to do. A Republican (or Democratic) president should consider him for a cabinet position -- Treasury secretary? Daniels has by no means ruled out that possibility -- he told the AP that he expects "to find some way to be useful."
Lastly, Daniels mentioned that one reason he didn't run is because he has "three daughters just early in their married lives. Think about the disruption of that that it would have meant." Paul Ryan has also cited his children under the age of 10 as the reason he's not running for president. Apparently the ideal age for children of strong Republican candidates is between 10 and 20, no older or younger.
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