Rice's offer to start F2F talks with Iran once they suspend nuclear activities was purposely designed for automatic rejection, telling me that this administration has no intention of negotiating seriously with Tehran. Whole dynamic of needing talks is driven by Iran's drive for nukes, so expecting them to fork over their biggest chip before even sitting down to the poker table is either supremely naive or just plain cynical.
With the Iraq tie-down and the Bush post-presidency in full swing, Bush simply abdicates global leadership on this one.
The only interesting question left is, Who picks up the ball between now and Jan 09?