Ben Smith takes a stab:
It's been suggested, variously, that this is a demotion for the hawkish Ross or a sign that (relative) doves have won the internal battles; that it's a promotion for Ross, and a sign that he has Obama's ear; that it reflects Iran's refusal to negotiation with a Jew (which administration officials heatedly deny); that it means he's taking over Middle East policy; that Hillary forced him out because he was Obama's guy; that Obama marginalized him because he was Hillary's guy; that other envoys are absorbing his responsibilities; and that power is flowing from State to the White House.
Those can't all be true, obviously, but a few things are, and the early indication is that Ross is moving closer to the center of power on his key issues, not farther from it.
Smith has some statements and analysis that back up his theory, but I'm dubious. The Iran issue is blowing up and Ross is nowhere to be found. It's not clear what responsibilities he will have in his new job, which means he hasn't been moved to take on any particular problem but will be part of a team at the White House. And when something looks bad, it usually is bad. Smith quotes Mike Allen: "With proximity comes power. Ross could soon be running Middle East policy, as he will have the president's ear on a daily basis." Right, but how many members of this administration have claimed they'll have the president's ear on major policy issues only to end up as marginal figures? Biden and Jones come to mind. If Ross didn't have the president's ear before, my guess is that moving to the White House is unlikely to change things.
