Wildbill, we've discussed this before, but there the main problem with your analysis is that there's no Barack Obama on the horizon this time out. I urge you and everyone else to read the book Game Change, which explains the 2008 nomination. Hillary didn't lose that nomination; Obama won it. He was a once in a lifetime, charismatic figure who beat out the establishment candidate, which almost never happens. (The last time it happened was Ronald Reagan in 1980.)
As a result of that election, there's seems to be this feeling that Hillary can't win the nomination. It's absolutely untrue. The chances of another non-establishment candidate bucking the odds and coming from nowhere to beat her is very low indeed. And this time around it would be even more difficult than before, since by November of 2006 Obama was already a famous face, pushing his book, and being spoken of as a possible opponent of Hillary and John Edwards. No one like that has risen.
If Hillary decides to run (and that is not for sure), she will win the nomination, and probably she will be our next President.
Why is she the favorite to become President? Because she's most widely known? Maybe that's enough, but if she's running as a 3rd term of President Obama's policies, that's a tough battle to win. If you haven't noticed, Obama is in the low 40's in approval ratings, I just don't see defending his policies as particularly helpful in winning.

I tried telling Tim the worst thing Hillary ever did was join the Obama administration and he laughed it off. Democrats running for the US Senate won't even admit voting for Obama, let alone be seen with him campaigning. In 2 years the 2016 Democrat field will pretend to not even know the guy. Yet somehow Hillary is supposedly just going to skate to the nomination having been a part of all that.
Yeah, we have a major disagreement on that too. What you're seeing right now in 2014 are Democrats struggling to hold on in some red states which are VERY anti-Obama (Louisiana, for instance.) Of course those Democrats are going to distance themselves from Obama if they think it will help them win. But from those examples you seem to believe that there will be a
national distancing from Obama by the Dems, the way the Republicans shunned George W. Bush in 2008 and 2012. And I think that's a really big stretch; I don't think it will happen.
In fact, I predict just the opposite. Democrats are just beginning their idolization of Barack Obama. His weaknesses will either be forgotten in coming years or blamed on his partisan opponents. He will be seen, by Dems and liberals, as one of the great Presidents. Mark my words, he will be their Ronald Reagan. He will be a HUGE force at the next Dem convention. And in 20 years Democrats will say to each other, "If only we had another Obama running."
I know you don't believe this, but I think it's true. Obama will NOT become a pariah.