Andrew labels this tale of Clinton campaign infighting "the Clinton Unraveling." That seems like reading too much into events, but obviously her people expected to win and now it looks like they might lose. To me, the more interesting element is that while Bill Clinton apparently wants more savage attacks on Barack Obama, "Penn, sources say, has counseled moderation, believing an attack would elevate her already-high negatives and drive her too far to the left to win a general election."
At the end of the day, I'd strongly prefer that the Democrats not nominate someone whose top political strategist's thinking is so single-mindedly focused on fear of going "too far to the left."
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