Was the President correct to make a 'Federal case' (so to speak) out of a local case from Harvard Square?

I don't think he did. In fact, I don't think there is any case at all. Seems Gates was released immediate and the charges dropped. The cop over reacted. Gates probably did too. BUT cops see this sort of indignation all the time... I would have expected him to handle it a bit better once it was clear that Gates was in fact the homeowner.