They hate each other so much that they are not speaking to each other.
And you know this how?
You may be right that Powell and Rumsfeld have problems and that's fine. But having both of those men on his side gives Bush the tools he needs to talk to both the hawks (through Rumsfeld) and the doves (through Powell) since it looks to me as if both are, when push comes to shove, following the President's agenda.
Like other's in this thread, I don't see that we've lost anything. The US public opinion polls are actually moving in Bush's and the war's favor. The EU, NATO, and the UN are in disarray. None of this is going to stop the war. And Bush has wasted some time to insure that (A) history will judge that he exhausted diplomacy before resorting to war and (B) he has shown some loyalty to Tony Blair in return for his loyalty to Bush and the US policy. The only potential danger spot I see is that the delay is giving time for war protestors to build up strength and organization but I don't think they'll ultimately be given enough to to make a mess or change minds.