Hope does not spring eternal for presidential democrats?

I'm a card carrying democrat. I was disgusted by George Bush's win in 2004. Who voted for him? And now that people are waking up to just how bad he and his administration actually are (damage already done!), I was feeling like sanity was returning to America.

Then, I read this article in Time magazine with the following quote:

"So why, in poll after poll, including the new TIME poll, does that advantage seem to disappear whenever voters are asked to pick a president in hypothetical head-to-head match-ups among front-runners with solid name recognition. In our poll, Hillary Clinton loses to John McCain, 42-48%, and to Rudy Giuliani 41-50%. Even though Clinton maintains a 7% edge over Obama among Democratic respondents, Obama fares better in the general election match-ups. It's so close that it's a statistical dead-heat, but Obama still loses: 43-45% to McCain, 44-45% to Giuliani.

Unfortunately, these results make sense to me. It looks more and more like the presidential candidate for the democrats will either be Clinton or Obama.   Is either one electable? Sure they could both beat George Bush or DIck Cheney -- but can they beat Giuliani, McCain, or Romney?  According to  Time -- the answer is no.  What's a democrat to do?