As of May 2005, despite his "mandate" Bush has seen his agenda stuck in the mud for some time. Phasing out Social Security is going nowhere, the Nuclear Option will not appeal to the mainstream populace, and the GOP was hurt by the Terri Schiavo fiasco. Plus, high gas prices, a sagging stock market, and the coming real estate bubble also present challenges for him. At his point in time, I think that the Democrats are in a good position for 2006, to pick up seats in at least one house of Congress (I don't think the Democratic Party is strong enough right now to take back the Senate or House, and if they gain in 2006 it will be in the Senate due to the effects of gerrymandering in Georgia).
There is just ONE itsty-bitsy problem with stopping Bush from making his second term as hell-raising as his first: Terror, terror, and more terror. We have gone 3 1/2 years without a sucessful terrorist attack on American soil. The public's initial embrace Bush has all but vanished (but unfortunately it did not erode enough to prevent Bush from getting 51% of the vote, not to mention those "security moms" who closed the gender gap) and he is no longer supported by 70-90% of the public. Unfortunately, while a majority of Americans do not like Bush's "Ownership Society" or his cuts in Medicare and Veteran's Benefits, they still blindly support him on the issue of terrorism. If you ask anyone who approves of the job he's doing when it comes to "The War on Terrorism" they will point to the fact that there hasn't been another attack on American soil. Unfortunately, if there is another one, the public will NOT turn on Bush, now matter how much we would like them to. Instead of looking at how this future attack were to happen, they will "rally around the flag" and blindly support Bush in reaction. You'll see those tattered flags back on the car radio antennas, and yellow ribbon magnents will proliferate even more than now. The political fallout will be a loss of backbone form within the Democratic Party (watch Dean and Reid turn into Gephardt and Dachle circa 2002 should Al Qaida get lucky again). Criticism of Iraq will slow to a trickle, and you will see the MSM begin preparing us for an invasion of Iran. The Patriot Act will not only be renewed, but you will see PA II, PA III, IV, and V passed or proposed. In the meantime, the 2006 Congressionl Elections will be a redux of 2002, and will possibly lead to a filibuster-proof Senate. Look for Bush to push for Social Security phaseout again in the aftermath, arguing that ANY debate whatsoever is a victory for the terrorists. He did this with the Department of Homeland Security Bill to stop Democrats from helping government employees, and could do likewise to push neo-Feudalism through Congress.
We need to take the possibility of another 9/11 happening and how it will turn 80% of the public back into sheeple and further the trend towards one-party rule.