The Obama campaign wouldn't give me an on-the-record explanation of his refusal to sponsor a bill to defund Blackwater, pointing me to this page instead. As I noted, Obama has a long history of aggressive work surrounding military contractors, which gives him some credibility on the issue. That he won't support this bill is reasonable, since you can quibble with any bill and it doesn't necessary reflect your position if there are other circumstances out there. That he won't state explicitly that he believes in defunding these mercenary groups, though, probably means he's interested in a regulatory approach. Yes, let's regulate mercenaries. Awesome.
I would say that we should get ready for the great turn to the right, except that I've never seen compelling evidence that Obama would govern as a progressive.