I agree your scenario may be the best way for the rats to run a "fake centrist" but I see a lot of major hurdles. Hilary has very high negatives and is terrible in public. Maybe she can overcome that. But first impressions are hard to overcome in the American public. Even if she does, she is going to have a hard time running to the right of a Republican on immigration, if she moves very far, she will lose a lot of her base. This may be Bush's biggest weakness, but I doubt the 2008 R candidate will let Hilary stay to the right on the issue. Hope not anyway, but that is a risk. On the jobs/outsourcing issue, depends a lot on the state of the economy. If the economy is heading down, and losing jobs, it will be an issue. If the economy stays strong - and if we don't raise taxes or sign on to Kyoto or other such suicidal acts, it should - it will be less of an issue in 2004.
I also agree that the blame for another terrorist attack will depend a lot on whether weak immigations laws/enforcement were a factor. All of these issues could elect a rat President, even if not Hilda.
But the bigger question I raise is the future of the rat party, not just in the Presidential election, but in Congress. Are they going to elect more Senators and Reps and retake Congress if they turn to the left? I doubt it. If they don't turn to the left, they lose the lefties. It is a dilemma that goes deeper than Hilda's shot in 08.
Not if we get the non-assylum assylum, then she'll have no problems what so ever. Furthermore, she'll have 80% of the media backing her.