Lott's re-election is something close to a sure thing, but if he had vacated his seat, the contest to replace him would have been very competitive, giving Democrats a boost in their efforts to pick up seats in November.
I see Democrats picking up a couple of states. I think there is a slim chance they can pick up the Senate.
The problem with having a state as expensive as New Jersey in play is that it might divert resources from other races. National Democrats would prefer not to spend money in New Jersey. But they may have to if this race gets close.
The bottom line is, Democrats will pick up seats. The question is how many.
Democrats have no incentive to come to the table, really. Not getting anything done is a victory for them, to be able to talk about the do-nothing Senate.