It's really quite simple.
From the outside, it appears the Left is imploding. "Turban" Dick Durbin's comments, Dean's rant on Republicans, Ted Kennedy....being himself, j/k

is making a LOT of people up in arms across the board. The #1 & 2 Democrats making HARSH accusations and no fellow Democrats saying it was wrong? These occurences are NOT unintentional.
All the while, Hillary is keeping quiet. I've heard interviews of her and she won't comment on those statements. Safely distancing herself but not condemning her colleagues. She is posturing herself to be more moderate and more conservative. In 2 years, she will appear more to the RIGHT than Left while calling herself a Democrat. She will run in '08. And it'll be a more conservative campaign than you can imagine.