I'm glad to see I'm not the only one who is thinking along these lines.
I drafted a post awhile back where I said, in defense of Bush, that everyone who proposes political solutions is guilty of this. Whether it is Republicans and free markets, Democrats and education, or Libertarians and freedom from government, the underlying approach is flawed, because at its heart it operates on the assumption that people are inherently good. At its core, the problem is a spiritual one, not a political one, because we know from Scripture that people are inherently bad (the "steely Biblical realism" that Dan talks about).
But those other folks aren't in control right now; Bush is. So I hope and pray that he does recognize that liberation from a dictatorship without freedom from the slavery of sin will only take the country so far.