This IS bailing them out!
As a borrower with a good credit rating, plenty of money down, and a fixed rate mortgage, I anxiously await my opportunity to be treated in a similar fashion.
If they cut the rates for deadbeats, they should cut everybody's rate.
If this is like some of the voluntary programs already in place, "deadbeats" won't qualify. All payments have to be on time and people have to prove that they can't make the higher payments. Personally, I think that's a pretty high price to pay for what may be only one or two late payments.