The President had several options in forming a response to Kelo.
He could have:
1. Pushed for an act of Congress to restrict the Federal Government's ED doctrine.
2. Publicly responded to Kelo and asked for state governments to restrict ED in their locales.
3. Done nothing.
4. Sign a piece of paper that can be rescinded on Jan 21st 2009 leaving the citizens of this country oppressed under Kelo when it comes to all future Kelo related ED takings.
The President has down some great politicking on the "ownership society" in the past, Kelo was a slap in the face to his personal, public, and political history, and he hasn't responded. Federal plans in N.O. and surrounding locales have the potential for the Fed gove to use ED in a major way to clear out flood plains, and this EO does what to protect local residents? Nothing really.
And I support heavy restrictions on rebuilding in NO.
Unless it is for a federal project, the federal government would not do the taking. If the feds clear out flood plains to let the land lie vacant, then that would be a federal project, I guess, and subject to current law.
Kelo gave governments the power to do takings for private corporations for private interests. This EO prevents the feds from doing that, but not state or local governments.