Maybe to those who don't have a political brain. W. is deploying some "strategerey" here. He knows SCOTUS will toss this abomination out. He eliminates this as an issue the dems can use in the upcoming elections. He also ensures that this type of bill never sees the light of day again. If he is going to beat the democrats, he has to be as sly as they are about his politics.
I have never heard of a Republican winning an election by becoming a Democrat. Reagan didn't cave before his re-election, the Republican House didn't cave when they won in '96.
If the stratagy for Nov. is to become as much like your Democratic opponents as possible then Bush is doing a very good job. I don't think it is going to win any elections though.