@Robert Gentel,
I'd be surprised if they actually do reverse the sequester, for a few reasons:
1, Obama has publicly stated that he'll veto any cute attempts to do so
2, about a third of the GOP caucus in the House has been talking about cutting the military anyway for a while now as a cost-savings measure
3, the cuts are illusory anyway - they are, as usual in Washington, cuts to the growth of the military budget. The armed forces will still have billions more every year for the next ten years than they did the year before.
The real showdown battle coming up are the extension of the Bush tax cuts. Popular opinion has been on the side of allowing them to go up for the rich - and many people, like me, think they should go up on everyone - and the GOP will be desperate to deal to keep that from happening. Obama may be able to use this leverage to actually get some concessions out of the House.
And I think it's going to be tough for Mitt to run on preserving tax cuts for the rich during a time of fiscal crisis, I mean, I would be slavering if I were Obama's team, and we were able to force him into a position like that. And indeed, these themes were definitely present in Obama's speech that this thread was named after.
Cycloptichorn