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Doc Intrepid, I agree that Obama and the Democrats have put themselves between a rock and a hard place, politically at this point. You're right in that they've passed the point of no return, but that wasn't the case last summer. There are many other issues that Obama campaigned on which would probably give him just as big, if not bigger, political boosts than healthcare without the degree of risk. Were I Obama, I'd have "tested the waters" so to speak with healthcare, and once I got the reaction that he did, I'd have either let the issue quietly fade away or scale back the changes that I try to make.
Politically, I think that taking on issues like tort reform and insurance across state lines first would be wiser as Republicans support these measures. By doing that, the Democrats could still take credit for accomplishing some sort of reform, compromise with Republicans (this seems to be what the moderates want), and use it as a basis for more sweeping changes later if the desired results aren't achieved (we tried it your way and it didn't work, now it's our turn).
Honestly, I think that the mistake here is letting healthcare overshadow issues like the economy and Iraq/Afghanistan Wars (two issues that Obama campaigned on heavily). However, at this point he's pushed health care so hard for so long that to drop it or compromise with Republicans would make him appear two-faced or weak to his base and opens him up for attack from both sides (Hillary 2012 anyone?).
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