I think its going to be a statewide office. Remember those feel-good radio ads with his voice that were playing in the days leading up to the election? I think the Indiana GOP was laying the groundwork for him to run for the governorship in 2012. Plus, remember he was traveling around the state campaigning for other Republican candidates? All this is getting his name out to the Hoosier GOP grassroots.
Or, the GOP "party bosses" could be preparing him to run for a Senate seat. Lugar could suddenly change his mind and decide to retire, leaving the seat open for a man of Pence's popularity. This would make it harder if not impossible for a Tea Party-backed candidate(in 2010 it was Hostettler and Stutzman splitting the vote) to win the 2012 GOP Senate primary. Lugar would have to retire first since I don't see Pence challenging him 2012. Hostettler yes Pence no.
Pence is not very well known outside of Indiana especially if Sarah Palin enters the fray for the 2012 GOP Presidential primaries.
He is conservative on a level that most people outside of the breadbasket won't be able to palate.... yet. My bet is on governor, it wouldn't cost much in campaign funding considering the current anti-democrat climate, and he would be able to have a more prominent role on his way to a run for president in 4 or 8 years.