I really doubt the dwarves will have to hand over anything. Even liberal commentators have so much as admitted that the Clintons are the power in the Democratic party. Do you honestly think the Clintons wouldn't eat one of their own if it would benefit them?
As for beating Bush, how many were surprised that the last election wasn't a landslide given the idiocy of Gore? If Hillary ran, it would not surprise me if the ultra liberals came out in such force that the Republicans would be caught totally unawares.
If Bush runs a re-election the same way his father did, then he'll be trouble no matter who the opponent might me.