The blogger cited in the original post has written more on the subject. Apparently the decision had more to do with the new safety guidelines for new shuttle missions than Bush's Moon/Mars plans.
Besides, saying that NASA is cutting anything that doesn't support Bush's plans is a bit of an exaggeration. Hubble's mission will likely be reduced by two or three years at the most (there are only 6 years left in its planned mission). As far as telescopes go, there's still SIRTF, GLAST, JWST. And there's plenty of science missions still planned and in development. Check here:
http://spacescience.nasa.gov/missions/index.htm