I think the wars will be much more ‘in play’ in 2004 than they were in 1992, which (right now, at least) is a positive for Bush.
The reason I say this is that Gulf War I was much more of a one-shot deal - OK, we’ve done it, now it’s over. Gotta tend to the home front. But GWII is part of what is portrayed as an ongoing struggle. Not to mention, we’ll surely still be seriously involved in Iraq next summer. If Iraq in 2004 is peaceful, serene, and seemingly on its way to becoming a democracy, then the war will be a very strong plus for Bush. If OTOH many Iraqis hate our guts by this time next year, and our forces and aid workers are frequently getting ambushed and killed, or having to kill Iraqis, then the ‘Q’ word will come back to haunt Dubya, and it’ll be a negative.
Other possibilities: if North Korea has lots of nukes by this time next year, people will reasonably ask, “Why weren’t we focusing on them, rather than Iraq?” That would take the War on Terror from a big Bush plus to at best a small one, maybe even a wash.
If there’s bad news out of Afghanistan - for instance, if the warlords running the country act as warlords historically have, and the TV news starts featuring it - that could neutralize the WoT as a Bush positive.
IOW, as long as all goes well, or the things that aren’t going well don’t lead the news, Iraq and the WoT is a big Bush plus in '04. But if things start going wrong in nontrivial ways, and it gets serious TV play, it could be anywhere from a fairly small plus to a big negative.
Domestically, Bush has a record to run on, now. And on the whole, it’s going to hurt him. Domestically, he’s got to run on his tax cuts, because they suck the money from everything else; if he trumpets, say, No Child Left Behind, it’ll give his opponent a chance to remind people that it’s a seriously underfunded program. Blaming the economy on Clinton will remind people that Bush believed things were great, too, and sold us the big tax cut on that basis.
How much this helps the Dems in 2004 depends on who their man is, and how shrewd he is in choosing which differences between the parties to emphasize. Gephardt’s universal health care plan, which would be paid for by freezing the tax cuts, was a good start, I think.
I think Clinton won’t be much help to the Democratic nominee, even if he tries to be. Remember that Clinton’s presidency left the Democratic Party worse off than it was pre-Clinton. I think the nominee will quietly tell Bill, “Raise lots of money for me, mail me the checks, and stay the hell away.”