I had one thought repeating in my head as I watched. This is a lame duck president. He made it sound like he still had plans for his final year, but he couldn't sell it. He knows he has less than a year, and he knows not much is going to get done beyond a stimulus package. Democrats don't fear him and they will block whatever he wants whereever they feel like it.
Watching the Democratic response, I watched the Kansas governor thinking, "America would like to have their first female president. Just not Hillary."
Also, I don't think Obama should do any more two-man interviews with Ted Kennedy. I saw then together on Today and it reminded me of when George H.W. Bush gave an interview with his son in 2000. It made Dubya look younger and less-experienced just being there.