Waiting for '08 means that she'll have to stand for re-election, perhaps against Rudy.
...she doesn't want to walk into a career knock-out blow delivered by a sitting popular President...
Bush is not that popular.
If she spent all her time in the leftist haven of Hawaii, she might pull that state close. She'd lose everything, everywhere. She'd produce a lot of noise from the MSM and the 25% of voters who have wet dreams over her, but she'd cede the middle of the electorate even more than Kerry is now. The MSM won't be able to help her -- if they could make a difference, they'd be helping Kerry now. She's got nothing.