TPM has put up a video of the testimony, including a <7 minute short version. It's well worth watching. The story is rather amazing. For all his faults, Ashcroft at least acted like a professional.
I think continuing hearings for now certainly makes sense, but if Gonzales doesn't resign we should kick him out. At this point the political case should be winable. the criminal case, if nothing else, should be achievable via Contempt of Congress. At this point I'm starting to prefer the possibility that he not resign. He richly deserves being forced out of office and it would set an excellent precedent for Congressional checks on out of control executive cronies.