46 minutes in, Obama clarifies what the "public option" is. He makes it clear here both what that option is and why it is not the "government takeover" its critics fear. Obama's basic argument is that the public option will not exclude or eliminate private plans, but rather help to foster fair competition.
The one problem that remains for me is that the public option might be too weak. Obama says it must pay for itself and will not be subsidized. But then, will the public option be too weak to fairly compete with private insurance? Remember, the goal of the public option is to create a system that reduces costs for people .. can it do this with a limited pool of money?