Is he? I don’t think so. IIRC, Schröder still is more popular than his adversary, Stoiber (who, IMHO, is just arrogant and seems to consider himself already in power - he’s meeting foreign heads of state five months in advance).
The problem, of course, is that it’s not the Chnacellor who will be elected by the people but parties.
I agree, however, that the hair dying dispute is just silly. And I think Schröder shouldn’t have sued them - if he had kept silence, nobody would have paid attention to that report, but once you run to the courts it gets the attention it doesn’t deserve.