If you want an example of how in-depth Secretary Gates has thought through his budget, take a look at the Littoral Combat ship. It's terribly over budget. But he kept it. Why? Because despite being over budget, if you start making them, you basically are producing a fast ship for a lot less money than a destroyer, frigate, or carrier costs. Which is exactly the kind of thing you need against smaller, insurgent type threats. Like, say, Pirates.
The situation in Somalia right now is an excellent example of how our military just is not built to face off against the asymmetric threats the U.S. is encountering in the 21st century. Which is why cutting back on the big ticket items and focusing in on the things we need is so important. Because tying up $5 billion worth of equipment because a couple pirates hit a container ship is a terrible way to use resources in the long run.