Remember that Reagan was losing to Ford and went straight to the convention and won it. She will either bow out on June 7th or go straight to the convention. If Obama is unelectable it cannot be blamed on her. He is being hurt now by GOP ads running in a number of states re: Wright and "elitism."
Those silly ads aren't hurting him at all. They only work on people who would vote McCain anyway.
And she won't go to the convention. The Super-D's will declare in June, and it will all be put to bed.