Josh Marshall has a good summary of just how the Bridge to Nowhere was killed, and Palin's role--such as it was--in the process.
If I may boil down Josh's summary a step farther: Palin was for the bridge until she realized that Washington wasn't going to foot enough of the bill. When it became clear Alaskans would have to pony up big-time (only after Congress killed the earmark, "stopping" the bridge in the sense most Americans must understand it) she turned against it.
So the lesson here flies in the face of everything this episode is supposed to say about Palin. She only turned against this project when the US Treasury came up short, when a measure of sanity was restored to the budget process in Washington.
Maybe the Obama camp should stop trying to get the media to call this a lie and start running ads explaining to middle-class taxpayers in Cuyahoga County that Palin wanted them to pick up more of the tab for that insane project, not less.