This piece, by James Fallows, is worth the time to read it (it's short, and it nails the character issue of Chuck Hagel quite well).
Do you want someone who will stand up to the President and who will stand up to the bureaucrats? Then you'd better find someone better than Chuck Hagel to run the Department of Defense.
My guess is that you aren't going to find that person, and I hope he will stand up and demonstrate through his actions that we need a leaner Defense Department and that we need to put people in government who have already shown what they believe in. Hagel is by no means perfect, and things like this are upsetting enough, but what we need is someone who can say no to the people who want to spend billions on stuff we do not need.