On the one hand, this would seem to be good news for proponents of the status quo:
As we've repeatedly shown, the so-called "Public Option" was never a good or viable idea, although the recent rumors of its demise are, um, exaggerated. Nevertheless, the sooner that monstrosity is off the table, the sooner we can begin to look for meaningful, realistic and sustainable solutions.
Which is why I, for one, am quite puzzled at the left's seeming to throw in the towel on health care reform (or, as it's evolved, health insurance reform). If it's PO or nothing, and PO gets thrown under the bus, then who's going to be supporting a major overhaul? The right? Maybe, but I thought this was supposed to be a bipartisan effort. And if it is defeated, it's obviously not going to be at the hands of the Republicans (the minority party in the House, and facing a filibuster-proof Senate).
We are not proponents of the status quo; the current system needs work, beginning with identifying the real culprits: the cost of health care and so many mandated benefits. If the left is going to pick up its ball and go home to sulk, we're more than up to the challenge of crafting sustainable, reasonable reform.