So the question isn't whom Bush or Mukasey will name to replace Taylor, since they can't do this, but whether congress will ask the DC district court to do so, and if so, when.

Of course, only Mukasey (assuming that he's confirmed) can name a special counsel, should congress request that one be named, to investigate Gonzo and/or any other similarly high level matters. And these crimes really do call for one, with plenary powers. But I doubt that he'll do this, and certainly not right away, before the matter can first be looked into by the DC USA. And whether or not that happens rests largely with congress--specifically Reid and Leahy, and perhaps a few others such as Schumer, Specter, Hatch and Feinstein.

Funny that the whole FISA brouhaha has made everyone forget about the USA scandal, when it is really just as important, and in some ways even more so, from a practical point of view--i.e. without principled and honest USA's, we will never be able to get to the bottom of the legality of the warrantless wiretap situation, even if the current FISA law is not extended, and the previous unlawful (since it violated the previous version of FISA, as opposed to now, where it's technically lawful, even if it's still unconstitutional) warrantless wiretap program will continue to operate unhindered, and be just as good as actually lawful.

The ball is in congress's court, not Mukasey or Bush's. Sure, they still have much power. But a lot less than they did before. So long as, of course, congress actually chooses to use the power that it now has. And based on past behavior, there is little reason to feel very encouraged about that, and I would not be at all surprised to see Leahy & Co. sit on their asses, stick their heads in the sand, and wait until '09, when they hope it will all just go away.