I feel that this is a topic that has not been getting as much attention as it should. One of the best players in the NHL, he will be going into unrestricted free agency after this season. A blog from Sportsnet suggested that he goes to Montreal, but lets be serious, it won't happen.
Another popular one is that he will go to the leafs, but it certainly will not happen with Ferguson as GM. Actually, it depends on if Sundin goes or not. If he retires, the Leafs will be in serious competition to get another power forward.
Alexander the Great has mentioned that he does not want to play in a town where there are thousands of empty seats, therefore eliminating markets such as Florida, Phoenix, LA, etc etc.
My greatest bet will be Vancouver, they are in need of some offense, has a great crowd at every game, and there is a descent Russian community in Vancouver.
However, keep in mind that he is an RFA, so Washington could match any contract that Ovechkin accepts.