If Obama is going to get an Obama program instituted it will best be with the cooperation of Hillary. The last thing I believe he'd want is to have to fight with her before taking on anyone else. Bringing her staff inside the tent would seem to neutralize her a bit.

I think that unless he can demonstrate immediate and overwhelming force within Congress he will wind up with her backbiting while moving on toward 2012. While I like both Clinton's politics I believe they are for themselves first and would sabotage Obama if they could. Co-opting her policy people would be a start toward limiting her influence.

And that's the reason I don't think she would want or he would offer the job of Secretary of State. She'd be in too much of a position to sabotage his policies, and would be ineffective the last two years of his administration as she was setting herself up to run.
Arf