Yes, I think so, David.  If I understand right, the bill would extend coverage to children but not necessarily their adult caretakers?  If we are going to go part way toward universal coverage, I don't think it a bad idea at all to pay for coverage for all minors, who ought not to be hindered in healty by their circumstance. 

Maybe there's a middle ground here that could work as a compromise between the Dems and moderate Republicans.

I guess I understand Bush's veto from the point of view of the bill possibly being a gateway to a fully government-operated system.  And clearly Bush doesn't want to go there.  Investing in children's health care ought to ultimately pay dividends as does universal education, and is an idea whose time has come.