What a difference 24 hours makes. The media is recognizing the reality of Obama's all but certain nomination. The debate now is what to do about Hilary. Two options have been floated as Trial Balloons: the VP slot, and the paying off of Clinton's debts.
I think there is a third option.
I firmly believe it would be a mistake for Obama to share the ticket with Clinton, for a number of reasons. I also share the opinion that money from donors to Obama's campaign should stay that way--it's a matter of ethics, truth in advertising, if you will.
There is another possibility that occurs to me. Obama can retain Hillary Clinton--for a fee large enough to make a real dent in her total debt--as a campaign consultant (I'm assuming there are no prohibitions against this type of role for a sitting senator). This would eliminate her need to stay in the race for financial reasons, and make it easier to access the Clinton's fundraising resources. While it's still a payoff, Obama does benefit simply from having the opportunity to quit spending money to fend off her attacks, with the possible upside of additional fundraising power.
There is still the downside that she will always be the focus of continuing GOP attacks. It is also true that it dilutes Obama's message of changing the DC system. And it may well be that the two simply won't be able to coexist functionally in any state. But if it does take a payoff to gently push her out of the race, I would be more comfortable with this type of arrangement than VP or a straight debt payoff.