In politics preception is what matters and the preception of this deal looks really bad. Once again the President Bush appears to have a tin ear. Couple this with the total lack of illegal immigration law enforcement and you have the preception of soft on security.
The President is a great and brave man but I worry about things like this...as you said perception is key and having an arab enterprise with an inside role in such a vital function should have triggered immediate concerns.
Furthermore it diminishes public confidence in the administration as the failed Supreme Court nomination did. It doesn't take a Machiavelli to know that your enemies will strive to bring you down...hence, one should not lightly hang a 'kick me' sign on your shirt locker loop.