Republicans more or less swept the House, with the biggest win is something like 80 years. People are disappointed about the Senate races, where the Democrats (barely) hung on to keep their majority. This is actually worse for the Democrats than if they'd lost outright. You can sum up why in four words:
Majority Leader Harry Reid.
He is massively unpopular throughout the country. He'll be front and center in all the bruising battles over ObamaCare repeal and shutdown of selective Federal departments for the next two years. It's hard to see him effectively building a Democratic coalition for 2012.
Of course, the Democrats could pull his leadership post, citing the recent election results as justification. The problem here is that it really wasn't his fault so much as Obama's and Nancy Pelosi's, and he did shepherd the top Democratic priority (Health Care) through to a successful vote, so this seems like it would alienate the rank and file.
Plus, he's a mean, powerful SOB. Payback would be hell.
All in all, the Republicans came out with the optimal result. Now they need to get to work, and show a bunch of very skeptical people (like me) that they're fit to govern.