She received more votes than Obama & the primary ended with her winning huge in a bunch of states that are hardly liberal. This was after the pundrity had written her off for umpteenth time. By not picking Hillary, Obama has left alot of her supporters like me who don't mind McCain less than thrilled. We'll see what happens but I think McCain is going to be able to win over enough of the Hillary voters in November.
She received more votes in the primary, the voting that is done by people along party lines. That means that she did well with registered Dems. That's not a sign that she'd do well in the general. Just ask Dukakis. And I very seriously doubt that she would have chosen Obama for her VP.
... It's a factor though & one that shouldn't have been dismissed in the way it was. I think there are quite a few more people that were really for Hillary than there ever was for Dukakis. As for a theoretical Obama as VP choice, yeah she would have put him on the ticket just for the simple fact that it was pretty clear that she probably wouldn't have won a general because of pissed off Obama supporters. It's probably what will cost Obama November.