If this is true about Bush deciding not to destroy Iran's ability to develop nuclear weapons, it's vastly disappointing. It's also ironically more destabilizing for the Middle East--it leaves Israel almost no choice but to go it alone. One can only imaging the maelstrom that will occur should Israel attack Iran.
Or, maybe it would just be a tempest in a teapot, centered around the Arab "street" and with most of the West at least silently commending Israel for its actions. Part of me believes in this particular outcome, and so I'm rooting for Israel to do what it must.