Unless the Democrats, including Hillary, actually come up with a plan by 08, they will not be able to simply throw darts and run against the boogey man. They have to DO something. They haven't done squat yet, except propose a stupid "no confidence" resolution. I think many voters will become restless with Democrats as the weeks and months wear on with no plan for Iraq.
Fact is we have not put a liberal in the White House since Jimmy Carter. I just cannot see Hillary being the next liberal in the White House (in part for the reasons I stated earlier) unless a really bad candidate gets the Republican nomination (e.g., Newt Gingrich).