Whether or not a cabinet-level Department of Homeland Security is a good idea, it's clear that the only reason Bush has made his proposal is because of the recent revelations of bueracratic incompetence. Of course, the new DHS would not include the FBI and the CIA, which would seem to be the most important players (other than the military) in thwarting terrorism.

It's also very clear that the announcement was timed to dilute the impact of Colleen Rowley's testimony. But don't take my word for it -- here's the NY Times lead editorial:

Back to the Drawing Board It was hard not to see these comments, and the announcement of the reorganization, as a response to the embarrassing disclosures of recent weeks. Only a few hours before Mr. Bush addressed the nation in prime time, Coleen Rowley, the F.B.I. whistle-blower, was vividly detailing the bureau's failures before the Senate Judiciary Committee. Earlier Robert Mueller, the F.B.I. director, told the committee about his own reorganization plan, which seemed by last night to have been superseded in part by Mr. Bush's blueprint. It did not look as if the two men had coordinated their plans. The disharmony left the impression that the White House had assembled its plan at the last minute.