This is excellent news. Rahm is a bulldog, he will keep the party in line and smack down any in-fighting. Holy Joe Lieberman is toast, say good bye to your committees. Clinton had issues with in-fighting in Congress. Rahm will keep them all in line. Additionally we will see the party make the Republican's come to them rather then trying to appease the minority party. Rahm Emanuel is a bulldog and not a bipartisan hands across the aisle kind of guy. This is good news for progressives.
UPDATE: "A report that Emanuel had accepted an Obama offer for White House chief of staff has been retracted, but other reports have said the congressman is "agonizing" over whether to accept the position."