Politically, I think you're right. I'm more worried about the legal aspect, which I imagine the Republicans will fumble with clockwork precision.
As far as the 'soft on terror' tag, the Democrats are stamping it on themselves with white hot irons. They're simply too dumb and fanatical to realize that if something happens because the Patriot Act fails to pass, and this wiretap program was compromised, the Republicans are going to 'wave the bloody shirt' at them for decades.
I really do think that this is going to be all out war. The president is really pissed about this because it has endangered the American people. He takes a lot of crap as long as the only ones who are hurt are the various politicians (including himself), but this one is different because the very lives of the people have been used as a political pawn.
This is NOT some little harmless or embarrassing leak, this was a DANGEROUS leak that seriously impacts the WOT and the lives of the American people.
We all may be totally disgusted with the people of New York and Los Angeles but the fact remains, they are Americans even if most are too stupid to understand how serious this is, and THEY are most at risk.
I'm less concerned with their fumbling that I am that "certain" Republicans, e.g. Specter, McCain or Lindsey Graham, will actually attempt to sabotage the legal process.