I heard Arnie Gunderson on Democracy Now say much the same (possibility of Chernobyl on steroids) yesterday and this morning.
To this point, nuclear power proponents have been out in full force (see 
comments here and 
google "Jay Lehr"), and a common refrain is that this is not Chernobyl.  I don't think we know enough yet to believe that they're wrong.
But that's setting the bar a bit low.  Chernobyl?  If, when this is all over, it's not as bad as Chernobyl, it's a victory.  See.  Thems nukes is safe.
Chernobyl is the perpetual outlier, the quintessential 
black swan.
But, even if the Japan situation does turn into Chernobyl, or worse, they will carry on.
The brave workers at Fukushima Daiichi will have become scapegoats, or perhaps the shortsightedness of nuclear planners will.  Fukushima will become the new Chernobyl, the outlier tale, but everything's better in France.  The Japanese clearly had some issues with corruption and dishonesty, you see.
Hopefully, Arnie Gunderson's worst case scenario does not come to pass.  In that case, the meltdowns "events" in Japan will be held as a beacon of how man can overcome and how nuclear power is truly the safest power in the world.