No, the coopting or triangulating strategy (of which that is a part) HAS neutralized Dems politically. I honestly don't know if W/Rove were expecting more direct payback from the likes of Kennedy.
Teddy did end up supporting the drugs bill. Other Dems did not want to give W the legislative win. But even there, Teddy was probably acting out of the honest belief that it was good to get that entitlement enacted and this was its last best chance, given the coming wave of Republican dominance.
Your paragraph above perfectly illustrates my point. So W gets a 'legislative win'. Big deal! The result is further growth of the welfare state. I hardly consider it a 'win'. Who is the real 'winner' here, W or Ted? I can tell you who the losers are...