Many people around these parts think that its great that Obama withdrew from public financing..I'm not so sure. Follow me after the flip where I lay out my reasons.
The campaign will be more reliant on big donors - While much has been made of Obama's internet fundraising success, the Obama campaign still collects money the traditional way as well..i.e. bundlers getting a whole bunch of $2300 donors into a room. Remember that the "bitter" comment occurred at such a fundraiser in San Francisco. All of the smaller donors like myself still have room to give Obama money towards the "primary"..its the large donors who don't have any room to give where the Obama campaign can tap for more money.
$80 million left on the table - The Obama campaign is giving up $80 million that they will be tapping their donor base for. This is money that could have been raised for other purposes. When you consider that it takes money to raise money, Obama might need to raise $90-$100 million just to be at the level that the federal government would have given the campaign. This money could have been given to other entities like the national committees (i.e. DNC, DSCC, DCCC), candidates for the House and Senate and even state and local races. Instead, these funds get sucked up by the Presidential campaign.
Whats wrong with 527s and PACs? - Lets remember that moveon.org and DfA are both organized as PACs. Given that Obama is probably going to be hitting up a lot of maxed out $2300 donors, it seems silly to think that this somehow keeps the fund raising grass roots. The Obama campaign isn't accepting money from lobbyists or PACs, but that doesn't stop them from accepting money from every senior executive of a major corporation or have said senior executive bundle a whole bunch of donations for him. Furthermore, 527s and PACs helping Obama would probably be funded by constituencies like labor or environmentalists who aren't going to be thrown under the bus regardless. Anyone wanting to support the Obama campaign financially after he has secured the nomination will still be able to give to a 527 or PAC.
Obama's time will be spent fund raising - Elections are about making campaign appearances and reaching as many voters as possible. Taking time to attend fund raisers is time that can't be used for rallies and other types of voter outreach.