Huntsman is too centrist. As far as I know, he is to the left of Romney. In fact, he worked for Obama up until a few weeks ago. That itself should make him anathema in Republican primaries. But he might end up sabotaging Romney’s campaign by drawing moderates away from him. (Not that there are many of those in the Republican Party, especially in the South.)
It still remains to be seen how things play out on the right. Pawlenty seems to be in a good position to grab the Tea Party vote.