Hillary Clinton is a brilliant choice for US Secretary of State
In that very narrow sense, Obama might have made a brilliant choice. He has restrained his main rival, putting her in a place where, by definition, she will not be able to criticise him at all. He has, simultaneously, sidelined her husband, a potential source of bad press and trouble. Finally, he has placed foreign policy firmly in the hands of someone who has strong incentives to appear loyal at all times.
From his point of view, it might be the perfect solution: Hillary might not win America a lot more friends around the world, but at least she won't cause trouble at home.