He is merely saying the very same thing he said all along - he condemns ALL 527's - not the vets - all (including MOVEON and all the dem ones).
This is not a cave at all. He just said Kerry should be proud of his service (because he did go to Vietnam).
Now - how the press will report it is - Bush condemns the Swift Vet ads.....Bush supports Kerry's service......Bush told the Swift Vets to stop.....
This was really his only option unless he wants to be right in the middle of the fight and he does not. Also, he CAN'T tell them to quit because they are not doing this for him. If he did, the press would report Bush tells his group to quit.
Which, from the guy who signed CFR into law, is consistent, I grant you. Consistently wrong.