The 9th circuit handed the Republicans a gift in its decision. Provided the Republicans have the good sense to use it. If ever there was an election that needed to be nationalized in the spirit of the Contract With American, it's the one in November.
If the elections are nationalized at all (regardless of the proportions) it's a disaster for the Democrats as long as Bush's job approval stays above 65%. The Democrats are trying to localize races this year.