Bush is currently out of touch with reality. He is like George Lucas. He surrounds himself with yes-men, produces ****, but then his yes-men tell him it is good. He gets rid of the ones who don't (His former treasurey secretary, Collin Powell, John Clarke).
He refuses to acknowledge any problems in Iraq, he refuses to acknowledge any problems domestically (Today he was talking about how tax time simply proves we need lower taxes, despite his refusal to cut spending), I mean, for godsakes, we have a failing economy and he promotes his economic advisor to Chief of Staff.
He needs to accept problems and deal with them. To do that he needs a new staff who will tell him what is wrong and how to fix it...not what he wants to hear.
Rummy needs to be fired, Gonzalez needs to resign, Chertoff definitely has to go, and Cheney as well. Condi Rice is the only one doing somewhat good at her job.