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How is Caroline Kennedy's situation any different than that of Hillary Clinton's nine years ago? Yes, there are other qualified candidates. (One would certainly hope so.) And some of those qualifications would apparently trump some of those of this candidate. (Just as this was so nine years ago.)
None of this makes Kennedy unqualified for the seat. Neither does it necessarily make the other candidates "better options". To the extent that any of this sentiment is left over from the presidential campaign (I mean, let's not be naive here), Senator Clinton, to her credit, has moved on. It's well past time her supporters did too.
As for Caroline Kennedy becoming Senator Kennedy? I'd be proud to have her as my senator--just as I would were one of several other candidates chosen. A life in public service counts for a lot--even if it's not played in the glare of the klieg lights.