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I didn't get that, either. I saw it as a way for Obama to address the issue on his terms and in a way in which he doesn't and won't give anything up.
Read some of the comments of his advisors - they're as firm as Obama is about his decision. For example, from Ben Rhodes: "I understand your disappointment. As Barack said, he would not have written the bill this way. But as for the civil libertarians, I think we all believe that the balance between security and liberty was badly skewed under this Administration. This bill continues a restoration of that balance...."
When someone says to me, "I understand your disappointment..." I know they're not giving in. At least my mother never did ;-)
