I keep hearing "The sky is falling" anytime the Dems try to do anything. The fact is nobody knows exactly what this will do because it is still not fully written (all speculation). If you go to http://factcheck.org/, you will see what it means without any of the Fox news or Glenn Beck spin, or the White House's spin. The Republicans are just pissed that they are no longer in power, and are trying to stop ANY progress until they can badmouth the Dems to get some seats back in November. If they had any intention of making progress they would have offered some suggestions during the process.
They are like the rest of the kids when the Dems said "Fuck you, I'm taking my ball and going home."
The watered down version they are putting through is weak, but it is better than anything the Repubs have been able to come up with. It's a game of chicken for both parties, but at least the Dems played the game.