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This essay by Joe Klein of Newsweek really captures where we are as a country. This last bit explains Barack Obama's greatest challenge:

So Obama faces an uphill struggle between now and Nov. 4. He has no personal anecdotes to match Palin's mooseburgers. His story of a boy whose father came from Kenya and mother from Kansas takes place in an America not yet mythologized, a country that is struggling to be born — a multiracial country whose greatest cultural and economic strength is its diversity. It is the country where our children already live and that our parents will never really know, a country with a much greater potential for justice and creativity — and perhaps even prosperity — than the sepia-tinted version of Main Street America. But that vision is not sellable right now to a critical mass of Americans. They live in a place, not unlike C. Vann Woodward's South, where myths are more potent than the hope of getting past the dour realities they face each day.