I wasn't sure whether to post anything about the latest hate-filled screech by Rove, but then I turned to Bilmon's Whiskey Bar and saw that he laid out the case better than I would have. So go read.
The only thing I'd add or extract from Bilmon's take is:
1. Rove's speech was calculated and deliberate
2. Anything Rove says should be understood as coming from Bush himself
3. The speech indicates they know the war in Iraq is failing and they are trying to establish a scapegoat for when the inevitable happens