Because he won (somewhat surprisingly, but Wawrinka has been surprising everyone all year) Wawrinka will retain the World #3 ranking and is actually at #1 in the ATP Emirates race to London at this moment. In other words, if he maintains this level of play all year long, he could become #1 at the end of the year. He is 6-0 against fellow Top 10 opponents this year, and 17-3 in matches played for the year.
Federer has now lost in the final of Monte Carlo four times (2006-2008 to Rafael Nadal) and has yet to win this title. He will remain at World #4 and leads the tour in number of match wins in 2004 (24-5 record).
Federer started well breaking serve in the 5th game and managing to nurse the break to a 6-4 first set win. In the second set he was broken in his first service game but broke back and held serve until a tiebreak. He fell behind 1-4 in the tiebreak and 3-6 but saved two set points before losing the tiebreaker 7-5. The third set was a disaster for Federer as his level dropped and Wawrinka's went up, going up 4-0 and 5-1 before closing out the third set 6-2. The stats tell the story.