Did I read this wrong or is this idiot woman actually rooting for bad things to happen, simply to embarrass the Bush administration?
no, you read it right. She's just repeating John Kerry's platform.
I know yours was a rhetorical question, but here's the answer anyway, in the form of a more complete excerpt from the transcript:
Soderberg: Well, I think, you know, as a Democrat, you don't want anything nice to happen to the Republicans, and you don't want them to have progress. But as an American, you hope good things would happen.
Soderberg: The truth always helps in these things, I have to say. But I think that there is also going on in the Middle East peace process--they may well have a chance to do a historic deal with the Palestinians and the Israelis. These guys could really pull off a whole--
Stewart: This could be unbelievable!
Soderberg:---series of Nobel Peace Prizes here, which--it may well work. I think that, um, it's--
Stewart: [buries head in hands] Oh my God! [audience laughter] He's got, you know, here's--
Soderberg: It's scary for Democrats, I have to say.
Stewart: He's gonna be a great--pretty soon, Republicans are gonna be like, "Reagan was nothing compared to this guy." Like, my kid's gonna go to a high school named after him, I just know it.
Soderberg: Well, there's still Iran and North Korea, don't forget. There's hope for the rest of us.