Consider this:
Bush's proposal will have the greatest effect on California, even in proportion to Texas.
Bush has only an outside chance to win in California, even in light of Schwarzeneggers victory which spoke more to a focused, personalized hatred for Davis rather than a consuming love affair with conservative philosophies. A victory would be welcomed but his present strategy doesn't depend on California. Bush does however need the Hispanic vote in other key states.
It would not be wild speculation to assume that Rove doesn't, in fact, care if he losses conservative votes in California as long as he can swing the Hispanic votes in these key states.
He's not going to make significant inroads on the Hispanic vote here in California by this amnesty idiocy---Hispanics don't vote based on who gives employers the cheapest source of labor---and certainly not enough to give him a shot at California's electoral votes.
It is going to cost him votes in crucial states where Bush is going to need the electoral votes to win, and which he carried by slim margins in 2000. Like maybe Florida.