Bush is kicking the larger can down the road.
History will regard the Bush presidency in some ways visionary, in others, tragically naiive.
I understand the President's point, and to an extent, he's right. But, as the saying goes, you have to fight the war you're in, not the one you wish you were in.
Fundamentalist Islam is what we're at war with. You can call it Islamofascism, militants, extremists, or whatever.
To Muslim ears, however, the message is loud and clear. Apostasy is fine, but if you truly believe in your religion, the way it is written, we are at war. President Bush communicates that message every time he tries to talk around it.
It would be like the President of Iran going on TV and saying "We don't hate Christians, or those who hold Jesus as their Lord. We only hate people that go to church and believe all that Bible stuff."
Do the math on that.
President Bush does the exact same thing when he tries to split 'militant Islam' from 'moderate Islam'. That's why the Muslims, the ones that understand their religion, anyway, know we're at war.