>If the Democrats were witch hunting him that would be one thing but the GOP is the party screaming for his resignation.

Exactly. If it were the Dems, my scenario wouldn't be anywhere near plausible. Actually, I think they didn't take the bait.

>I think the Wag the Dog theory doesn't play here.

No, I think this is more a false victim game.

>Now as to Karl Rove's resignation - there is an old saying in intelligence circles "Retirement is another form of cover." <s>

A proper description. The place where he stood became too windy and generally exposed. He can just continue to do what he was doing from a more obscure position.