Chen Shui-Bian, former Taiwanese president and proponent of independence from China, has been jailed on charges of embezzlement of millions of dollars of public funds. His anti-corruption credit (and his survival of a possibly-staged assassination plot) was a big reason his party won elections in the 1990s--but along with pro-Chinese sentiment, these charges (especially if they lead to a conviction) will cast a dark spectre over the DPP for many years to come--and give the KMT enough seats to act as they please.
In short, these corruption charges are the final blow to an already-sick and weakened DPP. KMT hegemony--and a slow leaning back towards China--will dominate the next many years of Taiwanese politics. Luckily, it is likely to make US-Chinese relations a whole heck of a lot easier for an inexperienced Mr. Obama.