Didn’t she allegedly complain and indicate she wanted to retire on election night 2000? Rehnquist may really not want to quit yet. O’Connor is 75 and he’s 80, it’s not like she quit young.
There is some speculation that Rehnquist is interested in ‘his’ court holding the record for longest run as a group. That record is passed in August, IIRC. He also may be holding out until closer to the new term to increase the pressure to confirm a replacement.
I think he’s just a stubborn, senile old coot, who won’t leave until he has to.
It was my theory that Rehnquist was trying to hold on until 2007, in the hopes that the Republicans could gain enough seats in the senate to provide a filibuster-proof appointment.