Obama and tax cuts

Today President Obama has probably sealed his fate for 2012 by alienating his supporters in his own party, and leaving himself vulnerable to the wing of the party who want to have a primary instead of just making him the candidate for the Democratic Party. No incumbent who’s had a primary has been re-elected.
The President today caved in to republicans before they even took power.
If this is what we can expect for the next two years the republicans with only majority in only one chamber he will be an irrelevant president. Republicans will underfund, modify or even rollback the health care in which he invested almost half of his presidency, with tremendous use of political capital.
The next two years will demonstrate if this president will hold his own or capitulate in every piece of legislation that the opposition throws at him, and by then he will prove to the country if he should be re-elected.