That's exactly how I took it, too. This is definitely humiliating for Powell.
I heard a conservative pundit the other night who speculates that the real reason behind Scowcroft, Armey, Eagleburger and Powell's reluctance to attack Iraq, is that THEY were the ones who didn't want to go into Baghdad in '91, and if (when) Dubya topples Saddam, and we find out firsthand the huge frightening cache of WMDs he has been hiding, all of #41's team will be seen as having screwed up.
This is why, in HER opinion, they are trying to stop Dubya from going in. Pretty poor reason, if true.
What a lame story.