Seems I have been wrong with my last post.
This 'compromise' is bad on almost all levels for the President. It's bad from an economic point of view and bad from a political point of view. The only thing Obama can still hope is that he's the lesser evil in the next elections. He probably is.
But that's not an achievement. You could pick any of 50% of US citizens as candidate for Presidency and he'd / she'd be the lesser evil compared to those republican candidates.