Well, I think your logic is flawed, and here is why:
As a close confidant, and advisor to President Bush in many matters of national security, she will have to RECUSE herself from all of those decisions.
War powers. Treatment of detainees. Torture policies. Role and authority of a wartime president. Etc.
I think her appointment is a smack in the mouth to conservatives who have given their time, sweat, and treasure to change the ever drifting social fabric of American Society.