Clearly your rose tinted glasses are what is confusing you. Yes, the Clintons were likely to find a way to continue the extension of her campaign. But that does not mean the DNC had to hand them an issue on a silver platter... which they clearly did. (though again, those rose tinted glasses may make it difficult for an Obama worshipper to see)
No, the DNC did not handle that the best way they could. As you and others have stated, this is over. MI delegates are not going to make things break for Hillary. All the DNC had to do was say... ok, Hillary gets the number of delegates based on those that voted for her. As for the uncommitted, they could have gone one of two ways... make them unpledged, which would leave it in the hands of the delegates. Or they could have said, Obama gets 80-90% of uncommitted and Hillary remaining.
Bottom line, they could have given Obama 50% of the uncomitted and it would not have made a difference in his winning the nomination. Yet, they toss out the vote... and yes, it was real no matter how much the kool-aid producers tell you it wasn't... and use an EXIT POLL to tell voters what they really meant.
They handed her a nice gift wrapped opportunity to make this an issue that Hillary supporters could argue.... legitimately. Because only an Obama worshipper would think that the DNC handled this well.
If you think Michigan isn't going to be a swing state this year, then you are in for a rude awakening. Especially if this move by the DNC has a lingering effect on Hillary supporters to the point that they stay home or even more drastically vote for McCain.
Yes, your party is moving away from Clinton control. So? That doesn't mean they aren't screwing the pooch in their handling of the breakup. There are amicable breakups and hostile breakups. Which leads you to question... why are they shooting for a hostile one? (and yes, Clintons are not making it easy, but the DNC should be careful before pissing off the followers of the one Dem family to have actually resided in the White House since Carter)