so to review: the president is talking about going with a scaled down version of the watered down version of a compromise to a fall-back plan.
it's not like this is his only option. the house could simply pass the senate version that already passed as-is. or the senate leadership could use reconciliation to pass the house version (or something else that is better than the current senate bill) with its 50-vote majority.
but of course, neither the president nor the democratic leaders in congress would go for either of those options. instead, they'll go back to wooing on of the senators from maine, even if it means giving up any remnants of real reform in the process.