In a political sense (i.e. putting the Administration on record as opposing Kelo) it makes sense. But, outside of the executive branch, it has no power, as it explicitly states. And even if the executive branch violates it's own policy, it still adds nothing to the arsenal of the property owner to challenge a claim of eminent domain. So, in the real world sense, I'm sorry, it's still toothless.
If the order gave property owners a cause of action (e.g. right to sue) for violations, Bush would be creating rights and essentially legislating. He can't do that. In at least that respect, it seems he has exercised his presidential authority as far as the Constitution allows.
Let me try once more. This EO provides new ammunition a court can use when the next case of econ dev. takings goes to court. When one of the courts eventually strikes down one of these takings cases the tooth will have bit.