Davis' term ends in 2007 and clearly the right to recall is there.
Given the situation, it makes sense that if he truly NEEDS recalling, it'd best to do it early in his term rather than at the last minute.
Seems like it's up to the voters of California to decide if he needs recalling, not anyone else.
I personally doubt that recalling Davis is going to change the California economy all that much. It'll recover when the rest of the US/World economy starts to move.
OTOH, it's never really bothered me to see politicians being made to bow to the will of the voters instead of simply doing whatever they want except while running for re-election.
So, the CA voters will do what the CA voters will do.