There is no doubt he will proceed. Only two questions remain. The first is how he will do it, and this is the substance of a ThinkProgress.org article. The betting odds, I think, are on some variation of nominating someone who is so qualified that any semi-reasonable person would find fault with any attempt to interfere with the nomination and confirmation.
Alternatively, Obama could extend the olive branch to the Senate with a centrist or near-centrist but that seems kind of futile given the second question: will the Senate GOPlins deliver on their threats to block the nomination? Those beasties have never responded to Obama's overtures before so there is absolutely no reason to believe in a different outcome this time.