Bob Novak has a report out that says unnamed "Illinois Democrats" are "quietly passing the word that John Edwards will be named attorney general in an Obama administration." Novak is a hyperpartisan bullshit artist who will make stuff up in order drive a wedge between Democrats, so it's hard to take this all that seriously.
But it does raise an interesting thought experiment. John Edwards is a passionate fighter for the poor, for labor, and for universal health care—he would be a wonderful addition to any Democratic administration. He would be a great attorney general, particularly because he could fight for workers on labor law issues and he could fight for the traditionally disenfranchised on election law. He could really reinvigorate the role of the Secretary of Labor. He could head a regulatory agency like the FDA, where his distaste for corporate power could combine with his passion for fair and affordable health care. And he would make an exciting VP choice for Obama, as I've said for quite some time.
That's a long-winded way of saying, even if he doesn't get the nomination, more Edwards! Of course, the Edwards folks probably don't want to hear that. They want to hear "Edwards for prez!" And that's why the Obama people are floating this rumor, assuming it's true: it gets the progressive media to laud Edwards' potential as an attorney general while further marginalizing his chances for the presidency.