William Daley is going to be the new WH Chief of Staff. In general, my reaction is pretty positive.
I can repeat what I said when Peter Rouse got the interim gig back in October. First, these positions are quite important. Second, in my view at least, far too much is made of the "real" ideological leanings of these people. We should want to know whether they're well-equipped to do the job.
When I was describing Rouse's strengths, I listed: "he's a problem-solver, he doesn't cultivate enemies, he knows the Washington landscape well, he has an excellent working relationship with the president." As far as I know, those all apply to Daley, as well, with the possible exception of an as yet unproven working relationship with Barack Obama. I'd say it's also a plus that Daley knows his way around a presidential campaign, since keeping the presidency running during one of those is going to be one of his challenges over the next two years. I like the idea that when the campaign demands that Obama absolutely, positively needs to be in San Dimas tomorrow or else California is lost, Daley will have a good idea of how to evaluate that request.
I can also say that my biggest hesitation about Rouse, enough to make me suggest at the time that Obama would be better off seeking someone else, was that Rouse does nothing to address the administration's biggest weakness, which is its administration of the executive branch departments and agencies. Daley, as a former cabinet secretary, should be more oriented towards that side of the presidency than the numerous former Hill staffers in the Obama WH (and, perhaps more to the point, the former Senator in the Oval Office) tend to be.
Now, all that said, if he doesn't develop a good working relationship with the president, he'll be a poor chief of staff, and I have no idea whether he will or won't. But for the most part, and from what's on record so far, Daley seems to be a reasonable choice for the job.