Actually, he was referring to the Republican campaign as a whole. Shifting the focus only to Sarah Palin, as you did here, hurts Obama because it makes it seem as if he's more concerned about Palin (the VP nominee) and not Sen. McCain, who is the Presidential nominee. It also makes it easier for Republicans to argue that if you think Palin does not have much experience, what does that say about the democratic nominee who is the top of the ticket. That hurts him. Focusing on Palin does what Obama criticizes Bush for doing with regard to the GWOT; taking your eye of the ball.

Interesting. At least according to the article I pulled the quote from, he did spend a portion of his speech refuting Palin directly:

“Let’s get the facts clear here,” Obama said, noting the McCain campaign’s new ad that showcases Palin’s opposition to the pilloried pork project. “When she was mayor, she hired a Washington lobbyist to get earmarks -- pork barrel spending.” “When it came to the Bridge to Nowhere,” Obama continued, alluding to the refrain of flip-flopping so effectively used against John Kerry in 2004, “she was for it until everybody started raising a fuss about it and she started running for governor and then suddenly she was against it!” And in some of his strongest language yet, Obama suggested that, in its new ad, the McCain-Palin ticket was simply trying to “make stuff up.” “You can’t just recreate yourself,” said the Democratic nominee. “You can’t just reinvent yourself. The American people aren’t stupid.”

I agree that the focus should be McCain, but Palin's current popularity makes it seem like McCain made a brilliant choice (at least that's the current narrative). She shouldn't be the focus of his attacks, but he can't completely ignore her. There is plenty he could attack her on other than experience. Without Palin, McCain is pretty defenseless.