My reaction to the Blagojevich story is something along the lines of "I'm shocked, shocked, to find corruption going on in the Illinois State House!". It doesn't seem to me that Blagojevich has done anything qualitatively different from what nearly every politician does, namely, dispense offices and favors to those who contribute to their campaigns or give them political favors. The sale of ambassadorships is essentially institutionalized, an entire street in DC is given over to funnelers of money from industry to congress, etc. In California, the state is basically completely in thrall to the prison guards union, which is one reason we have more people in prison than in college.
What Blagojevich did wrong was to be just really, really, blatant and stupid about the way he played the game. For that he will be punished, but he's just the sacrificial goat for the entire culture.
On the other hand, the idea has been floated that Patrick Fitzgerald be appointed special prosecuter to investigate the numerous crimes of the Bush administration. Won't happen -- if Obama was going to do anything like that, he wouldn't have retained Bush officials like Robert Gates -- but it's a nice dream.