Given Watson’s half-century in the first innings, Hughes may find himself out of the team for a while. And in the whole scheme of things, I don’t think this is a good thing for Australia. First, it is sure to derail a career that was just getting started. Hughes has really failed in only one Test and that too via some dodgy umpiring decisions. In the last tour match, he actually outscored Watson (68 vs 50), but apparently the Australian management had already made their decision.
But as long as people are going to be making such decisions on form, why not drop Michael Hussey while you are at it? Q raised this issue, but I thought I would illustrate it with some graphs.
First, his average after each innings. Notice the relentless march southwards (since January 2008)

Exhibit B: His 5-innings rolling average – It has been a long time since he has sustained a good run of form. A good score is invariably followed by a poor score or a duck (several in the last few matches)

Exhibit C: His actual scores during this period – Notice the clear difference between the first half and the second half.

Hughes is unfortunate to have been a new entrant to the team. Even after scoring tons of runs in South Africa, he has been dropped despite the existence of someone who has been displaying a far worse run of form. But if Australia recognize that Hussey (out for a golden duck today) is a worse liability for the team, Hughes can make a comeback.