The public option is still alive for a variety of reasons, as Nate Silver has pointed out. The Dish always thought it was viable because the logic behind it makes sense to anyone with a brain, because it would save money, because it is actually popular and because the opt-out option squares the circle nicely.
But Nate is also correct about this:
None of this would have been possible without the yeoman effort of a relatively small number of bloggers and activists -- they know who they are -- who were tired of taking "no" for an answer. They wanted this fight because of the paradigm-shifting implications it could have for how business gets done in the Democratic Party. And, somewhat to my surprise, they're having it.
What part of "we" in "we are the ones we've been waiting for?" does the Beltway still not understand? And why has it taken this long for the Obamaphiles to tackle their leader. He's the follower, for Pete's sake, remember? The people who voted for him are the leaders.
So make him.