I believe Rove's lawyers have unequivocally denied that he is Woodward's source. Also, Rove has been very visible lately. Common sense tells me that he doesn't expect to be indicted, which is why he feels comfortable back in the spotlight.
I don't think it's Rove, neither does the left but they love the idea.
I'm sure you are correct about Rove being honest about this. But, since when has that stopped the left from making accusations, however false they might be? Don't we hear "Bush lied!" just about every day? Haven't we all heard the rumblings about impeachment--even though we (most of us on FR at least) know he never did anything even remotely impeachable?
My concern with this is that Woodward might be willing to lie if it helps bring the Bush admin down, person by person. They really WANTED Rove, and they've been puting ever since he wasn't indicted. And if Woodward goes into court and lies through his teeth, I'm concerned that he'll be believed by enough people that they'll get their way.