Okay, I haven't commented on the Axis of Evil yet (Eric's got some commentary.).

I've got no problem with the comment in itself.

And there are others deserving of the appellation.

Here's the problem: Many people have concluded that we are on the side of good or the side of good. We don't have inviolate moral credibility here. Not that you need to to fight evil. However, we should look to our own policies. Too often we're ruled by 1. our national interest, and 2. our corportations' ability to make money. There has been no admittal that our actions might be suspect.