Per Brian Beutler, we see in Bloomberg that Obama would "sign off" on co-ops after yesterday’s Gang of 6 meeting:

 President Barack Obama may accept nonprofit health-insurance cooperatives in place of a new government-run plan as long as consumers are guaranteed more choice and competition in buying insurance, a top aide said.

“We would be interested in that” if those conditions are met, Nancy-Ann DeParle, director of the White House Office of Health Reform, said in an interview with Bloomberg Television’s “Conversations with Judy Woodruff” airing today.

The co-op plan was designed by the insurance industry not to provide competition that would eat into their profits.

Health care advocates have to decide what they want.  If they want a health care bill that will do nothing but bail out the insurance industry, co-ops will do it.  If they think that any health care bill must have a government-run component to be able to compete with private insurance and keep costs down, they are going to have to fight for it.

Progressives in safe Democratic districts have no excuse for selling out their constituents, who probably favor a true public option by 90% or more (if the country is at 76%).  They re the ones who have nothing to fear form Republican teabaggers. They are going to have to be pressured into holding the line by their constituents or the battle is lost.