^ When Dalton left the role, Grant was a rising star after Four Weddings and A Funeral. The tabloids were linking him to the role, even citing the fact that his then-girlfriend Liz Hurley looked like a Bond girl as a reason for casting him.
I would be tempted to dismiss this as the usual tabloid poo, but I read an excellent article in a movie magazine around the time Brosnan was cast, which went through the history of Dalton's departure and the search for his replacement. According to the mag (I can't remember what it was now but I think it was Premiere), Mel Gibson was approached but declined, as he was making Braveheart. They tried Liam Neeson, but post Schindler's List, he wanted to do serious movies (like The Haunting and The Phantom Menace, Liam?) and also turned them down.
His Schindler co-star Ralph Fiennes was approached and was keener but he wanted to play Bond as a cold-blooded assassin. As Eon were keen to move away from Dalton's image, this time it was they who said no thanks.
According to the article Grant was also invited to audition but basically said it wasn't his cup of tea. Somewhat reluctantly, Eon then went to Brosnan, who had been a fan favourite for years - they were reluctant to cast him as he was seen as a tv star and after LTK's underwhelming performance and the 6 year gap, they wanted a big name in the role.
I agree that if cast, Grant might well have shed the fluffy image he now has. His Bond would almost certainly have been in the mould of Moore (though he's a better actor than old Rog, IMHO) but if you see the dark cold side he can bring out in the likes of An Awfully Big Adventure, Bitter Moon and even Bridget Jones, it's not inconceivable that he would have made a decent enough stab at it.