The prize was a symbolic gesture, a kind of "vote of confidence" for the change of political rhetoric (and hopefully actions eventually) coming from the mouth of the Leader of the Free World. It's like the coke vs. not-coke ad, where Obama, in the eyes of the world's plebicite and much of its establisment political elite, equals not-Bush and thus the adversary of an America that decides unilaterally to go to war despite the contrary opinions of many nation states.
Obama, in there eyes, represents diplomacy and negotiation, rather than the ideology of "rogue States" and the "either you're with us or against us" geopolitical bipolarity of the republican neocons at the helm over the last eight years or so.
In this sense the Swedish board has decided to, in the tradition of political auspices, desired to bolster the image of a man, who, more than any other figurehead on the planet, has in their eyes the possibility of guiding the course of contemporay events and thus in these times from a conflict riddled world toward one of greater peace.
Obama isn't the first Nobel Peace prize winner to have controversial credentials (one thinks of Arafat in the first instance, among the many others like Kissinger), nor is he the first US president with such issues to have recieved it. For that goes to Teddy Roosevelt in 1904, just following the same president's armed struggle with Spain over Cuba.
So it's often not about the reality of the political figurhead's achievements (as is so common in the dispensing of propagandistic prizes which are, after all, colored with political implications), so much as being about promoting the desireable ideological changes the recipient politically represents, which can, these yes, bring about more peace.
I think the prize is, therefore, simply a vote of confidence in what Obama's presidency represents, especially over that of his two-term predicesor, to the world's peace loving establishment.
So in this sense it is completely justified and, furthermore, a rather bold and intelligent move on the part of the Swedish academy, because now Obama's peace initiatives will have added weight as a result. The only ones who are really going to call this a mockery, are his cynical political rivals that just want to see Obama fail in everything he tries to acheive, even at the expense of saving a world that is rapidly preciptating toward the brink of possible further, an potentially much more devistating, wars. Which is naturally sickening and potentially criminal.
For the entire world, both on the left and on the right, should be at least in Obama's peace settling initiatives, cheering him on whole-heartedly and without reservations. But tell that to idiots like Rush Limbaugh.
Of course, Obama now has to come up with goods. To transform the rhetoric into reality. And this as they say, aint gonna be easy.