I think I mostly agree with you, though I'd word it differently. Given that a single payer system never had much chance politically (since over something like 9 months the most favorable Congress healthcare reform we've had in at least 10 years or will likely see again for at least 10 years couldn't even hammer out a compromised version), what we've got is probably about the best we can realistically expect.
What you call "a sell out to the insurance industry" could also be called expedient compromises with the insurance industry. The fact is, we can't possibly get significant insurance reforms (covering pre-existing conditions, doing away with the practice of rescission and post-claim underwriting, removing annual and life time benefit caps) without giving the industry the individual mandate. And we can't pass the individual mandate without providing some means for those who really can't afford insurance as it stands.
So those three elements are interconnected, and can't be accomplished piecemeal. Both the Senate and the House versions of the bill would have accomplished these things without increasing the deficit. Both would have resulted in the covering of some 30 million who currently have extremely limited access to healthcare.
I think passing this is better than nothing. But--yeah--politics is a dirty business.
You could keep clean hands and do nothing, or you could make the deals and compromises and do something that will help a lot of people. And in at least some of these cases, it is a matter of life and death.
If for no other reason but to end
rescission and post-claims underwriting, I would say these watered-down compromise bills are worth passing.
Similarly, if the bill did nothing else but give 30 million people a reasonable chance to have decent access to healthcare, I'd say it's worth it.