Yes "islam is peace": clear, consistent and dead wrong.
You’ve mischaracterized Bush’s position. You will never find a quote from him saying “Islam is peace,” though you may find many indicating that Islam has traditionally been a peaceful religion.
And I believe the president is right about that. Muslims have until relatively recent times, lived in peace around the world and in the US. It is only over the past 30 years or so that radical Islamists have tried to hijack this religion.
The president is 100% correct to point out the distinction between Islam as a religion and Islamists as terrorist enemies.