I think Taylor could go two ways. One, this fight might actually help him in the long run, some great champs and some sure fire hall of famers have been KO'd, so its not like its impossible to bounce back from. Pavlik KOing him could very well be beneficial in the long run. Maybe he'll actually start listening to his corner now.
Being KO'd by Pavlik could also ruin his career if he lets it. If Taylor starts fighting like he's afraid to be hit or it Pavlik has cracked his chin, then yesterday could be as good as it gets for Taylor.
I think he'll probably bounce back just fine, and I think he has a decent shot at beating Pavlik in the rematch.