Personally, I think that Ferraro's comments are pretty damaging to both candidacies, to the Democratic party as a whole, and even to the country. I think the entire Democratic Party needs to deeply condemn Ferraro's comments for what they are (an attack on the way the Democratic party nominates people).
The fact that this was pretty clearly at its base an attack on the Democratic Party is why myself and a number of others have suggested Fox News as a career choice.
Her comments are, nonetheless stunningly stupid, even though there seem to be a lot of people who strangely sympathize with them. You are right-- Obama does deserve more respect but this race has become ugly and quite frankly I think that the comments are likely to hurt Hillary more than Obama even if they are just taken at face value.
BTW, I am an Obama supporter, and a white male businessman. People often wonder why I support affirmative action and diversity in hiring. The fact is that without diversity in life experience, ethnic background, an even sometimes race, businesses can't meet the needs of a diverse customer base. The attacks on affirmative action are not just attacks on Blacks, Asians, etc. in the work force, they are also attacks on minorities as marketplace customers.