While Obama has been criticized for his decision to decline public financing, the reality is that the financing mechanism he has implemented, both for his campaign and the DNC, is exactly in keeping with the spirit of the campaign reforms implemented in the wake of Watergate.
Let's remember this. The 1970s reforms were not implemented to give politicians access to millions of taxpayer dollars. The rule changes and public financing provisions were implemented as a way to limit the influence of well-heeled special interest groups and corporations, which had previously been able to pour hordes of cash into campaigns.
As we all know, every campaign reform is eventually undermined as those same special interests take advantage of loopholes, some intentional, some inadvertent. One of the big loopholes in current law is the ability of the national parties to tap unlimited contributions. Add to that the creation of 527s, which are even less accountable than the party committees themselves, and Obama is right to say that the system is broken.
McCain is more than happy to take advantage of these loopholes, but Obama's recent decision regarding funding for the DNC and his prohibition on PAC and special interest money in his own campaign has positioned his campaign as the only one that truly is guided by the spirit of reform.
Rather than being defensive on the issue of campaign finance, Obama should turn the tables on McCain. Obama's campaign is truly publicly-financed, by the nature of his remarkable ability to attract small donations from so many people. Obama is essentially reshaping campaign finance in a way that could be far more positive than any legislative approach.
McCain's campaign, OTOH, is wallowing in special interest funding.