Obama is right, Clinton can and should stay in the race as long as there is a following.
More important that Clinton or Obama--or even Rep or Dem is that we preserve our democracy for the outside world--but even more importantly for ourselves.
Democracy is a messy business and there are always unforseen issues cropping up (who would have thought after more than a year of campaigning--the Dem race would still be unresolved). The debacle in Florida in 2000 or less so in Ohio in '04 should actually be looked at as triumphs of democracy (which can only triumph by having more people involved) The handling of the above issues, particularly 2000 were where the problem comes in.
It is very important that this nomination and subsequent election be open and fair. I ma a Floridian, we took a gamble (allbeit Rep lead--but there was not viable Dem opp) and lost--oh well--our party and elected Dem's should be the ones deciding this, and humbly asking to be seated (even at a .50 rate)--just like with sports, we lost this battle, but there is always next time. Get over it, there are bigger fish to fry.
If all things are open and honest and questions are dealt with, Obama will win the nomination. No question about it--throw whatever kitchen sinks you want, play whatever youtube clips you want--the man has reached into the American voter and has tapped into something that makes them want to make this a participative democracy instead of a plutocracy.