By definition, DC operatives have no clue how the average citizen will vote. A bag of turnips could beat Obama right now. I think Mitt just about meets those qualifications.
I think the Dems are counting on Mitt being the Republican nominee. Ginning up all the hysteria about Wall St. (OWS, the mantra of "millionaires and billionaires") would indicate this, since Mitt (with his Bain background) is the most easily tied to Wall Street, Obama's being in bed with the worst of Wall St. notwithstanding because the media will continue to be silent on that.
Another thing: I heard a brief clip from a Biden speech on the radio the other day, just tsk-tsking that anyone would speak ill of Mitt for being Mormon. I assumed that means the Dems have their anti-Mormonism campaign ready to go. Oh, not Biden or Obama (too obvious) -- more like a History Channel or a CNN special or both or all ganging up.