It is a big lose-lose for the NYT. The liberals, and their media whores including the NYT have already utterly lost this Valerie Plame battle against President Bush and Karl Rove like they were utterly defeated in all the other battles they have engaged with President Bush and Karl Rove for the 4 1/2 years.
It'll stick with the 80% of the populace who only scan the headlines at the checkout counter.
Why is Reagan's cabinet still referred to as the most corrupt ever? Because Richard Allen accepted a $75 watch from the Japanese?
Even if the NYT wrote a retraction (and didn't bury it, as they usually do), the damage has been done. So it's win-win.