Palin vacillated between extraordinary highs on the campaign stage — she ignited more enthusiasm than our side had seen at any other point — to debilitating lows. She was often withdrawn, uncommunicative and incapable of performing even the most basic tasks required of her job as McCain's running mate.
The decision to relocate debate prep from the campaign trail, which is where McCain did his prep, to Sedona, was to isolate her and help her overcome the shock of becoming an overnight celebrity. There certainly were discussions — not for long because of the arc the campaign took — but certainly there were discussions about whether, if they were to win, it would be appropriate for her to be sworn in.
The McCain campaign was actually worried about winning because they weren't sure what they would do about Palin, and even considered dropping her as the Vice President after the election because she was just not fit for the job.
No one else on either side would ever confirm that independently, I'm sure, but holy shit.