The Democrat Party was addicted by the FTFT strategy [First This First That]. After the First Afro-American President they wanted the First Female President. Furthermore Hillary, after losing the primary elections VS Obama, wanted well more than being Secretary of State. She has waited ... and her weight in the Party was [and is] important. I don't think that the Democratic Party had the possibility to ignore Clinton's clan [an evidence of this is that the very large majority of the "superdelegates" was with Hillary].
The Democrats insistence on social issues is what makes them not only annoying, but ineffective as a governing party. I think even the Libertarians could bring more to the table at this point. I also find it ironic that "Love Trumps Hate", but that their very hatred of certain core parts of Americans is why they lost. You can't call half of a country deplorable and expect to win. Trump's insults involved an "other". Hillary's, involved "everyone not named me." That's the difference.
I think so, sanders would have galvanized more liberal voters who stayed home this year because both options were so bad. His downsides were debatable Clinton and Trumps were inexcusable.