The elephant in the room is the capacity to launch heavy loads (100+ tonnes). As far as I can see, the Ares V was the only launch vehicle, in service, construction or projected, with such a capacity. Its cancellation is a blow to all space missions.
Yeah, the commercial services could shunt people around. And small pieces of cargo. But that's a comparitively simple trick.
What about lofting new, large modules into space? Delta and Atlas won't cut it. About the only alternative is Proton, and I thought the whole idea was to avoid reliance on other countries.
What I say at the moment is that the Obama direction would perhaps have been good if it were started before a commitment was made to a different direction.
One of my favourite comedy programs when growing up was the British classic "The Goon Show". In one episode, the PM of Britain is confronted with a government building contract that went 10 times over budget.
PM's assistant: We can't stand for this!
PM: We're not going to. To teach those involved in this disgusting waste a severe lesson, I have ordered the building burned to the ground, and a new one put up at the proper price!
We laugh - but the joke is on NASA. This is exactly what Obama has ordered.