I think what we saw in this campaign was that Barack Obama used grassroots support and the strength of his charisma and oratory to unseat Hillary Clinton, who I think saw herself as the anointed candidate from the beginning of her campaign.
I read some comments during the Obama/Hillary race for the nomination that said, basically, if Hillary doesn’t get the nomination she’s politically dead, because she is the obvious candidate, and she expended a lot of political capital and money to get as far as she did; while if Obama loses the nomination, well, he’s new and untried and he can run again in four or eight years without the same stigma because he didn’t start from a position of strength and national name-recognition.
I’m not sure that’s accurate, but I think it’s a fair place to start. Hillary has lost a lot of appeal as a Presidential candidate, both because she lost to a relative newcomer and because she kept on campaigning long after it was objectively hopeless, arguably because she thought the superdelegates would all break her way because of long service to the party.
So if Obama wins, the Democratic Party is going to change, because it’s clear that the rank-and-file voters and party members are not dancing to the tune that the Clintons want to call—Hillary may not reflect the actual face of the party accurately by 2012. And if McCain wins, the Democratic Party is going to have to change, because, well, the rank-and-file voters did not vote for Gore, for Kerry, or for Obama in sufficient numbers (and it was clear that the rank-and-file voters preferred Obama to Clinton on top of that)—so the party will have to change its focus and its candidates to attract voters.
So in any case I really don’t see Hillary running in 2012 or 2016 unless she wants to fail dismally, and I think she’s smart enough and savvy enough to figure that out.
And Palin? She’d have to do an incredibly impressive job over the next four years in order to be taken seriously as a Presidential candidate. About the best thing you can say for her is that she holds the sort of ideological positions that the Religious Right loves; but she doesn’t have the political savvy to make it to the White House on her own, and she doesn’t have the political connections to be put there by someone else.