Simon,
I really don't think it is as bad as all of that. The Speaker has stated that he will not allow the country to default.... what we witnessed in late 2011 was complete madness. I'm relieved that they chose this, increasing the government's funding, instead of the coming debt ceiling to stake thier ground. To me, that actually shows they DO care about the country.
That Congress has to increase the debt ceiling is the most bizarre structure I can think of. The Executive has to raise only the taxes Congress authorizes, has to execute the laws Congress enacts (spend money), and can only borrow what the Congress allows. All the other governments I know of legislate the first two and the third naturally follows. A failure to raise the debt ceiling means the President is put in conflict between the Congressional Taxation Power, Spending Power, and Borrowing Power. A constitutional crisis is inevitable in the face of a default. I have read some opinions that should Congress not raise the debt ceiling the President should ignore the debt ceiling and break the Borrowing Power of Congress. This would be unconstitutional and would likely result in impeachment, but is the better of the three to violate.
http://www.columbialawreview.org/how-to-choose-the-lease-unconstitutional-option/
I am very pleased the Republicans are choosing this current tactic rather than the nuke they have access to. [I don't agree with what they are trying to do, but if they were truly terrorists they'd try to blow the economy up with the debt ceiling. Of course, to your point, there are some (few?) Republicans who argue for doing exactly that.....]