Update on 8/29/08: I talked to a high-ranking Obama campaign member this morning who was in complete shock after the Palin pick.
Sarah Palin doesn't tick off all the boxes—notably foreign policy experience. But she ticks off quite a few. She is pro-life. She will appeal to economic conservatives. (Here is what Club for Growth President Pat Toomey says: "At a time when many Republicans are still clinging to pork-barrel politics, Governor Palin has quickly become a leader on this issue. She is a principled reformer who understands how badly wasteful spending has marred the Republican brand.") And as far as national security goes, energy is at the center of that issue—a Palin strength. If early reaction is any indication. St. Paul will be rocking.