Interesting read and some good reflections.
Only point I'd bring up (everybody's a critic, no?) is that Dean was initially a favorite among Democratic insiders. I think this is an important insight to the soul of those who run the party. Even after Kerry got the nod, Dem voters couldn't really gin up enthusiasm, (except for bitter jibes at Bush). Like the Dole nomination however, the insiders went with their core, despite ultimate unelectability and lack of genuine popular support.
If the Dems make another sham lurch to the center (into which the new & improved Hillary is trying to triangulate herself), it will be against their innermost beliefs. But to retain power, they'll do it.
This is why congressional Democrats are dancing with congressional Republicans over a constitutional amendment that would open the door for Arnold to run -- but also open the door to another Bill Clinton presidency. They've seen Hillary from the inside and know she can't win. They want more of Bill.
But my guess is that by 2008 there won't be a Democratic Party for either of them.