I think the panic is premature and here is why I think this. I have a daughter who was taking notes for her gov't class. Her exact words when trying to take notes on one of Kerry's responses was "Its hard to take notes on what he says." In a world of spin and nuance, that was the single most brilliant political observation I have heard.
It's not a question of panic; I'm simply trying to be unlike the Democrats who will deny reality in the cause of blind ideology.
Kerry simply did somewhat better than Pres. Bush in this debate. You are right to point out that he was largely substance-free, and the president did make some good points.
It's just a bit disappointing, because I was hoping to see Kerry's campaign sunk tonight. But, all in all, I don't think this hurts the president very much. He didn't embarrass himself; he just didn't come out as strongly as I had hoped.