Once again, far too many statements with respect to NASA are about maintaining jobs and not producing viable products. This is why government space will fail in taking humanity to the next level of space exploration. NASA is now a jobs program, NOT a Research and Development branch of the government for the purpose of space exploration and development.
Is it nice that Obama is considering boosting the NASA budget by a billion, focusing on Heavy Lift, and killing Ares 1 in favor of using NewSpace companies to accomplish the tasks Ares would have done? Yes. But when you have entrenched politicians who only care about keeping jobs in their districts where NASA centers are located, you completely lose sight of the real purpose of NASA. Sometimes, as a viable company would, you trim the fat or relocate your staff to be better utilized. That's just how it is, if you're a private company. NASA is so bogged down by political nonsense that they can't get out of their own way, and it's not their fault really.
I wish this was considered when NASA was being put together, but alas, NASA was a whirlwind creation with the Moon as the prize. I don't think anyone involved in the process saw the detrimental affects of spreading the organization throughout the nation based upon Congressional fancy. Nor would they have foreseen how such a structure and its governance would end up being the cause for its stagnation.
However, I still find this to be a half-assed move. Obama has yet to address one of the key aspects of the future of human spaceflight, which is fostering the growth of the Commercial Space Industry, not just placating it. What we need are moves like creating tax incentives to start space based companies, increased funding for space based university research, and the restructure of ITAR to get back to missiles, bombs and guns, and get out of peaceful commercial space. Hell, the last one doesn't require a dime to accomplish, but would result in huge economic boons to our nation.
As I said last night during the SpaceVidCast show, WE are the ones who need to get into positions of power, or elect people who share our vision of the future, if we're ever going to make the kind of moves necessary to make our dreams a reality.