Nah, he's picking so many Clinton retreads because he KNOWS he doesn't have the experience, and has to rely on the Clintonistas to pull his ass out of the fire if he even wants a remote chance at reelection in 2012. This also removes Hillary from the presidential equation in 2012 as well.
A shrewd move, but one that could backfire on the Clintons, Obama, and the Dems in general quite badly if anything goes wrong and it isn't handled well. The firefight between the White House and Foggy Bottom will look like the First Battle of Bull Run, with BOTH sides playing the Union. And, like the battle, the genteel Washington society which went to witness the carnage will be RUNNING from the battle, horrified by what they have just witnessed.
Bottom line--it's a battle neither Obama nor Clinton can win, but that's not going to stop them from trying.