Excellent observations Jacob. We have to remember that Secretary of State is, by far, the most important Cabinet position at this time in our history. With all the damage the Bush Administration has done to the United State's international image and the ineptitude displayed by Rice, due in part to Cheney's interference, Obama can not afford to turn the office of Secretary of State into a Ceremonial position. I have no problem with the "Team of Rivals" dynamic, but they need to be Highly Qualified Rivals.
Also, I don't think the DLC should be allowed a return to power in the Obama Administration, for many of the reasons you point out, but also because the Clinton Administration ( that gets credit for a booming economy that was based on the DotCom fraud and the Sunbeam model) with the DLC at the helm, wasn't a departure from the Reagan-Bush41 agenda but, in very real terms, a "New Democrat" version of the same agenda.
We need to navigate our current troubles with both eyes open and dispel the myth that Bush43 is responsible for all ill. The DLC, despite its entrenched infrastructure, is not the solution, it's part of the problem. Putting the DLC in back in power would be like following the authoritarian Doctor to the submerged bow of the capsized Poseidon. Obama needs to be careful.
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