There was a little good news out of this election: at the state level, particularly in Minnesota, where the DFL is on the verge of re-capturing the State House. See this blog post on MYDD.
Also read the Minneapolis Star-Tribune coverage (registration may be required) of the Democrats' Minnesota House surge. This story has some overtones that remind me of the latter part of the Mike Harris era as Ontarians woke up to the consequences of the low tax, no services regime he espoused.
One of the really significant Democratic wins was in Colorado where they won the State House and Senate for the first time since 1960. This column from the Denver Post is worth a read. Colorado is a state that is now Republican but with trends that suggest the Democrats could take it nationally at some point in the future. They also took the Colorado Senate seat which had been held by a Republican.