The ramifications of the democratic rivalry

Last week, journalists were proclaiming Barack Obama victorious, most likely the next democratic nominee -- that Hilary had blown her campaign. Eleanor Clift of Newsweek, wrote an article entitled "A Day of Reckoning for Clinton" and Emma Brockes of the Guardian announced with a strong title that "Once the favorite, Hilary's Last Stand." Well, Hilary made a last stand at Ohio and Texas but it was not in fact a last stand at all, but rather the possible push that the the Clinton campaign needed to remain a player in the democratic race. Hilary told us that she was going to win Texas and Ohio, two very important states for the democrats who have lost Texas in the past couple of elections and even though the democrats have won Ohio, a notorious swing state, in the past elections, it is important for them to continue winning. The new headlines are from the New York Times "Lesson of Defeat: Obama Comes out Punching" and from Joe Klein of Time "Hilary Rises -- the Race Goes On."
Here's my problem with all of this, Obama and Clinton have in essence split the democratic party in half. John McCain has established himself as the Republican nominee -- he even got the support of President Bush who he has feuded with in the past. Because of this, the republicans can attack the democrats as well as establishing themselves as more moderate before the democratic nominee gets the change. And the truth is, Obama and Clinton just don't have that many things to disagree on anymore. How the democratic nomination come down to a popularity contest? And if so, would it be better for the democratic party to pick one and end this fiasco they call the primaries?