I think you're going to be pleasantly surprised in 2008.
There's a very good chance the Republicans are going to keep the presidency. No matter who the Republicans run, the Democrats have a pretty good record of running someone worse.
Hillary would probably lose to almost anyone, and Obama is a fresh face and not much else at this point. I've noticed an interesting trend in recent polls to go "generic," i.e. "would you vote for the Democrat or the Republican?"