"It's important to be honest among friends," he says at 0:24 and then literally puts his tongue in his cheek. He was lying and he knew it. Lying about being honest.
But what damnable luck for the Democrats to have this thrown at them 2 weeks before the election! It's such a bad issue for Obama. He hasn't done what he promised, and he's fought against constitutional rights that he ought to be actively pursuing, whether he'd made promises or not. He's going to have to rest on the argument that he was always all about Congress making the change. But why hasn't his Congress gone his way? And do Democrats in Congress want this issue forefronted now? They've only made everyone unhappy — people who want DADT repealed and people who don't. And then there's the additional issue of "activist" judges.... (Phillips was appointed by President Clinton, who, of course, signed the original Don't Ask Don't Tell statute.)
ADDED: Andrew Sullivan:
So once again, we will have the political prospect of the Obama administration simultaneously legally defending the Defense of Marriage Act and Don't Ask, Don't Tell in court, while politically saying they oppose both...The GOP is convenient, and the Obama and the Democrats have taken advantage of that. I think they are deeply responsible for the failure here. Obama's administration is actively fighting against gay rights.
Yes, the GOP is the main party to blame. But no, this does not excuse the extra-cautious, gays-are-radioactive mindset of the Obama administration...
UPDATE: The Obama administration, continuing its active fight against gay rights, will appeal the decision in the case about the Defense of Marriage Act.