Obama is a DLC Republicrat to the core. However, he is the very first rock star DLC Republicrat, hence the fuss.
As Richard Bridge pointed out, he is in reality very right of center on many issues.
He is a soundbyte and style over substance politician, IMO. I was glad to see that Harold Ford, the other "rising star" African American DLC Republicrat, who had served a couple terms in the House, lost in his bid for a Senate seat this year.
I don't know why Democrats don't have it on their radar yet that the most conservative wing of the Democratic party these days is largely the African American middle class.
I'll stick with the Feingold/Harkin wing of the Democratic party, thank you very much.