He should go. No doubt about it.
In most other fields, where the chief executive (or another senior manager) has been in charge during a catastrophic failing of any kind, they have fallen on their sword.
For as much as I loathe the banks right now, the chief executives of many banks stood down, when the failings of their organisations were revealed. Admittedly many of them stood down with nice big payouts, but still, at least they went.
And look at the BBC, the former Director General (who had only been there five minutes) fell on his sword, in light of the Jimmy Saville/Newsnight scandal. (Although admittedly, he got a nice fat payout too).
I'm sure there are many other examples.
Yet it appears Nicholson is dead set on remaining in post. He believes a change at the top isn't what the NHS needs right now.
My friend is a GP, and in her words, "oh no Mr Nicholson, a change is exactly what the NHS needs or we can't move on."