Chairmanship of the DLC will help establish Vilsack as a leader among Democratic moderates. The group is credited with propelling Bill Clinton's candidacy. Hillary Clinton is also expected to have a leadership position in the DLC, and the article speculates on a future Clinton-Vilsack ticket.
The DLC has become a frequent target in the more liberal blogs, which I consider a foolish course. Being a majority party requires having a variety of views, and sometimes the views of DLC members are even right.