A reasonable assessment. But Obama knows how to play the game. He holds the cards. Imagine Hillary threatening to take him down after she is indicted. RACISM will be screamed by the Black Caucus and the entire Black Victim Industrial Complex.
There's just no easy way to make Hillary go away gracefully, so like it or not the DNC's best option is to nominate her and let her go down in flames in the general. They can at least console themselves with being the first party to nominate a woman presidential candidate and Hillary can have her footnote in history alongside Ferraro.
After 8 years of Obama the odds of another Democrat succeeding him were slim to begin with and this way the Democrats can blame the new president for all the ills of the world for the next four years. Of course that assumes that the wheels can be held on the financial wagon until January--something that's looking a lot shakier over the past week with China's troubles.