Movin' on from the looney bin
To anyone who is not a Democrat, this story is great news. MoveOn.org is claiming ownership of the party. Now, this is much like a fight over an old pair of underwear at a garage sale, but it's significant for a couple of reasons.
This is Clinton v. Dean. Quasi-centrist Democrat wing v. nut Democrat wing. The struggle for the party's soul begins again (and one might argue that something needs to actually have a soul before a struggle for it can develop, but I digress). But more importantly, this indicates that the party just can't bring itself to even approach the center which would make it more competitive nationally.
The problem is that even though MoveOn was quite effective in the primaries and is a credible force, their brand of ideas lost. Because in the marketplace, that junk still doesn't sell. So go fight over the dirty old briefs. You deserve it and you're the only ones who really want it anyway.

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