My friend reports that his interactions with folks in the financal community suggest that, much as they appear to be downright terrified of Warren, it would be utterly gutless for the White House to let Warren do what she's been doing and then not nominate her to run the CFPB.  For whatever that's worth. If she is nominated that could be quite a show. 

Even if she was not confirmed (the expected result, although the prospect of going on record with a no vote might, depending on how the hearings unfold, conceivably prompt some senators to reconsider their current inclination on that) I think the hearings, and, depending on the outcome, the post-hearings fallout, could provide a major learning opportunity for attentive citizens and members of the media. 

The CW would be that the WH should not "waste its political capital" nominating someone unlikely to be confirmed.  I think that is so clearly nonsense with regard to the potential impact on public opinion of a rejected nomination in this case that, if she is not nominated, it would suggest the White House saw such a fight with the banking lobby and the Republicans as a loser for it, based on the kind of governing MO and re-election campaign they appear committed to.