Two things:
1) The government has stated already that they have no intention on running GM - at all. Actually, I believe it was Obama himself that stated that. GM confirmed it.
2) I agree that the best thing they could have done is left their brands that were pulling them down. The Hummer, Pontiac, and Saturn were ridiculous. Especially in the last few years. Their remaining brands have HUGE potential. The Corvette is known worldwide as an economy sports car (relatively) that can roll with exotics that cost 5 or 6 times what it does. Chevy also had some excellent trucks, which are good (here in Texas every other vehicle on the road is a truck). Cadillac - same thing. they are still the standard of luxury in the world (i.e. people say "that's the cadillac of laptops", etc. read: not the bentley of laptops, not the rolls royce of laptops, not the maserati, all of which, when it comes to luxury, blow cadillac away). Chevy had some awesome fuel efficient cars too. The cobalt is amazing - i think someone commented that they had one at one stage. Good stuff