I think it's a combination of reasons.
It doesn't rain a lot and there is a lot of traffic in Rome. Traffic means waisted rubber of all the tires on the pavement which will be there until the next rainshowers. When the rain comes this rubber becomes very slippery. And of course, the cobblestones aren't flat.
So this wet, rubbered and cobblestoned pavement becomes a very dangerous enemy for the TT.
Hammering the bike gives power and pressure on the wheels which doesn't help you staying strait as well.
It amazed me that everyone else stayed on the bike. Tell's this something about Menchov....;-)