Why did the party insiders go with Obama?

It's so obvious that Hillary Clinton would have done a better job, both as president and as party leader.

The war in Libya increased Clinton's popularity, and devastated Obama's approval rating.

A new Gallup Poll finds Secretary of State Hillary Clinton's favorable rating from Americans is now 66%, up from 61% in July 2010 and her highest rating to date while serving in the Obama administration. The current rating is just one percentage point below her all-time high rating of 67%, from December 1998.

http://politicalwire.com/archives/2011/03/30/clinton_nears_all_time_high_favorable_rating.html