I suspect Obama, and probably other Democrats, have been double-crossed by the "moderate" conservative leadership. Turns out they're not moderate after all, they just get other people to do their dirty work. The administration trusted big insurance, big pharma, and big medicine to abide by their deals, and not unleash the crazies. & here we are, crazies on parade. It is just like the big financial firms, who have undercut the administration's economic team.
With this near-revolt, the Obama administration and the New Progressives move into a new phase. I wonder what it is going to be like.
BTW, no, I don't think Obama has sold out. A deliberate sellout would not involve a proto-revolution.
[edited a few hours after posting--I like this version better.]