They have allowed the Democrats to determine the parameters and to establish the premises of the debate. This whole area is Republican strength - and it has been effectively neutered through Republicans not forcing the issue.
Here is a GREAT (and spooky) video of Obama cutting back on our military, interspersed with news items of China missle launches, chanting muslims, etc. VERY POWERFUL. It was on a FR thread earlier today.
http://www.youtube.com/watch?v=8sj91NH5fvw