We are far weaker than we need to be, but it isn't as bad as you paint it. First, GWB is taking steps to increase manpower. (The most important thing he did in that regard is to restore the dignity of the Commander-in-Chief, but he's also raising pay and at least moving in the direction of better equipment.) Second, if push really came to shove, GWB would suck troops from our overseas deployments faster than you could say "occupation".
Well, I wasn't trying to paint a "gloom and doom" so much as suggest that recent actions point to a weaker military than many would think we have.
I also don't see this "we'll nuke anybody" signal as particularly encouraging, as I don't see a reason outside of what I outlined in my original post for this being stated.
I'm not so sure we'd pull troops out of the 130 or so other countries unless things become real dire. Speaking objectively with no politics attached, the U.S. would be abandoning the empire its built up over the last 100 years if it did so, and I don't see that happening. Of course, I could be wrong.