The depth and breadth of opposition out there is too great to substantial health care reform. The only thing people will accept is very watered down proposals that the Republicans can accept.
The Democrats' 59 seats in the Senate and Congressional majorities are meaningless. Those majorities no longer have the support of the majorities that elected them, not on this issue, capiche?
Also, don't say the polls show most support a public option; that support is very shallow. When people actually start to think about it, they turn against it. The people who actually care about this are overwhelmingly against it.
The failure to convince the American people of the need for universal coverage and public option is not our fault. The Democratic mandate was totally blown on the bail outs of the banks and the stimulus bill. The latter had some good things in it, but it had no magical programs that could have been used to sell it as good for the nation in the long run. He was not sold very well. The former is why we are not in 1932 today, but it was also bungled.
The end result is that people aren't willing to support any further expansions of government. The only thing Obama can possibly push through now is tough financial reforms. If he sells that well, I think that might find support. Also, some health care reforms like guaranteeing coverage for preexisting conditions and other efficiency improvements might be possible.
Besides that, we just have to wait for the economy to recovery and wait for things to get a little better, and do everything in our power to make sure that happens. This is the best we can do, and the best Obama can do.
Continuing to take unrealistic expectations is not helpful. Yeah we're beat, and it's a huge defeat. But there's nothing shameful in that. I really believe it. The conservatives may gloat, but we were handed the biggest economic collapse in 80 years. If we can just handle that, there is a chance the American people will reward us and we will still be able to pass public option in future years. But asking for it now is premature.
Regardless if Obama "gives up" as I suggest, he needs to massive rethink his strategy and approach to the Presidency. He cannot go on like this. If what has happened in the past 2 months continues, by next year he will be where Bush was in 2008.