As far as I know this has not been reported widely in the press. I think it is a good step.
White house to drop "war on terror"
The entire exercise should never have been called a war. It is not possible, IMO, to have a war against a concept or a tactic. It is only possible to fight against a political group or nation. The use of this term has encouraged some to consider this as a war against Islam as that is the only real political entity that is in common with the criminals. Clearly too, this is not a war against Islam.
The war on terror should correctly be categorized as part of normal (though spotlighted) criminal enforcement. I hope we can drop that expression from our lexicon. I hope the Bush administration follows up. I hope the Bush administration turns its attention to understanding the psychology of the terrorists rather than focussing on the tactics. Eventually there will be a political solution -- the sooner the better.