Why is this bad? Well, the whole part of redistricting house seats is controlled by the census. So, with determing the population of people (with that the demographics) the states can then control how districts will be remade. This was done in 2000 when Bush stole the election. This allowed the repubs to redistrict in ways to make it more difficult for dems to win seats.
This turned out to have short term gains but we all know what happened in 2006 and 2008. They lost their asses.
I agree with Obama's move to have the census report directly to him. We have worked to hard to have a republican in control of such a big political issues.
Redistricting is also another important reason why controlling state governorships and state congresses is so important.
Also, the GOP is pisses off about Obama's move. This is a twofer.