President Bush could not possibly be that foolish.
Is it foolish, even now, after being insulted by this W.H. that I don't think he'd be vindictive and nominate Gonzales to spite us? I don't know. I do think it raises an interesting question of the character of the man some supporters of this nomination perceive, if they believe he'd be so childish.
It doesn't mean he wouldn't nominate Gonzales, just that I do not believe he'd do so in retaliation.
However, I have the strong feeling Gonzales has the sense to calmly decline recognizing the base isn't inclined to him and loyalty to the President. It was his office, after all, that joined Cheney in objection to Meirs.