There is no question that breaking holes in the wall between Church and State does immeasurable harm to the Republic. I never considered that the harm might flow both ways. The Christian Science Monitor has a great editorial that shows the other side.
[Bush faith-based initiatives] gave spirituality a bad name in social-service circles. Sad, since spiritual or religious beliefs and practices help millions of people recover from addiction, mental illness and criminality. Unlike other social services that provide a generic good, such as housing, rehab programs often invoke spirituality as the very means of recovery. But after six years of faith-based talk and funding by federal agencies, mental-health and addictions-treatment professionals are wary of spiritual interventions, which they associate with one religious brand: the conservative Christianity of Bush partisans. (source)