As Carpetbagger says:

It strikes me as rather unfortunate that we’ve reached a point in which it’s literally front-page news when the president is willing to acknowledge that we are not winning the war in Iraq. Talk about your soft bigotry of low expectations.

It bears repeating that just before the elections one month ago, Bush took the position that we are "absolutely winning" in Iraq.

Now clearly, nothing has changed dramatically in Iraq from one month ago.  It’s just as shitty now as it was then.  So what’s changed?

Only one thing prompted this change, and that is Bush’s desire to remain relevant.  He is now saying what everybody knows only because if he wants to avoid appearing out of touch.  Does Bush really think we’re losing in Iraq?  Did he really think we were winning one month ago?  Who knows?  He’s playing politics, not speaking the truth.

The solution, Bush says, is to add 70,000 troops — something that Kerry proposed in 2004, and was scoffed at by Bush.  Now, he tacitly admits Kerry was right.  Unfortunately, it’s probably too late now for them to make any difference (as opposed to 2004).

Ygliesius has some cogent thoughts.