A couple of thoughts...first and foremost it was a very poor choice of words, and if - as he says - it was an attempt to ridicule Bush and his failed policies with a joke that failed, then it was a bad idea, and a very bad joke attempt.
Kerry is pretty specific most of the time with his words, and a very good speaker. He should know better than to mess around with words like this, especially at such a crucial time for his party.
However, I don't think for one second his intent was to undermine the value or intellect of troops in Iraq now, or in general. I've heard a few veterans and current soldiers call in ranting about this and saying they were offended. At face value, i guess I could see it, but considering that Kerry is a veteran, he would essentially be saying that about himself, and I just don't think that makes sense.
I don't have military service to draw from, so I am not speaking for anyone other than my opinion. I can see how those here that served could take offense, but thinking it through, I don't think Kerry was ripping or saying the troops are not smart - or whatever that point is. I just don't think so.
Bad decision, bad words, bad timing. He deserves criticism on many fronts, I agree. And I, too, hope Kerry and Gore are not a part of the democratic candidate scene this year.