As Nixonian as Obama looks at the moment, it's way too early to say he's finished. The media can and will rescue him by dangling some shiny object (Angelina Jolie threw away her titties! Kim Kardashian gives birth to the anti-Christ!) if they see fit. Only question is if the AP thing has turned them against him at all. My guess is not.
As for your second question, it's kind of funny how people really expected Obama to change Washington for the better when, if there's a place more fucked up than DC, it's Chicago. I don't know if Obama actually knew what the IRS was doing. I rather doubt it, actually. But it does seem very appropriate that the IRS would become so politicized under him when he constantly frames debate not just in terms of opposing points of view or opposing political parties, but in terms of good and evil, friends and enemies, as is the Chicago way.
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