Saddam was not a stupid man. I believe he just miscalculated. I believe he eliminated, buried, or removed the WMD in the run up to the war with the calculation that when none were discovered, world condemnation against the U.S. would force them to retreat where at that time he would come out of hiding and regain control. The U.N. would then lift sanctions and resumption of his WMD programs could be continued without interference. That scenario may be quite likely. Remember that Kay's October report showed that the weapons programs continued right up until the war began and that they had been scaled down and concealed and were often using surrogates, so that production could have been switched over in a mattter of days to the dangerous agents. This fits right in with your conjecture.
Kay on with Wolf Blitzer now, its clear that the media now wants to take down Tenet.