What Scheuer said really isn't insane. Another attack by OBL would almost certainly drive Americans out of their minds further than the last time, more than ever willing to ignore Constitutional limits on government power, in addition to adding fervor to get OBL.
What is possibly insane is the wistful gleam in the eyes of neocons at the prospect of such an opportunity. It's not clear to me that Scheuer shares that extreme view though the clip seems to indicate the possibility. Despite his well justified criticism of the WOT, he's always clearly been a hawk.