Time didn't name Rudy Saint of the Year. The POY designation is meant to memorialize some kind of outstanding achievement during the year. Rudy's management of the 09-11 crisis was outstanding and extraordinary by any measurement.
Agreeing that he's entitled to this designation doesn't mean that I agree with his stands in other areas or condone his personal failures, which are significant (though W deserved it more, but in the spirit of the season, I'll forgive Time for not wanting to give it to W two years in a row), any more than agreeing with Andrew Sullivan means I endorse his open homosexuality.
I forgive you though, one mistake does not a litany make.