Reply #1: I think he actually believed the hype - a Pro-West MIddle East

[Deny and Shred]

He never wanted to use diplomacy - force only, baby.
He trusted the NeoCon plan of toppling the dominoes arrayed against Israel. First, Iraq, eventually Iran, Syria, and any remaining Arab supporters. This way, he doesn't have to broker anything. With force as the guiding principle, the region and world will fall into line.
Diplomacy is a last resort for him and them. I think after the Israel/Hezbollah/Syria '06 fiasco and the departure of Rummy, Condi and the State Dept finally could have a bit of a voice. Bush realized he ought to do something, because his MidEast legacy is looking like, well, ....
The diplomacy road started with Powell's RoadMap, then went nowhere. Bush is simply grasping at straws. He thinks he'll be able to say "I tried, just like my predecessors, but couldn't git er done." He has no clue the problems he's wrought for the future.
As for the library, that is ancillary. A crumb for a job well done. The plan was to leave the Saudis in the dominant position in the region, clear out the competition. With the oil profits and billions in arms we've sent, that might still be the case.