This just in from Michael Anton, who spent much of W’s first term in the White House press office:

Peter,
I just watched your interview with McCarthy.
You should know — you may know — that exactly the approach you describe, to have the President propose the creation of new law to deal with terrorists, was something the administration thought about, as early as 2003. Perhaps before that, but certainly no later than 2003.
As with everything, it had advocates and opponents. The opponents managed to win, and the advocates gave up after a few tries. The idea never got to the President. So far as I know, Condi and Hadley were aware of it, but it barely got to their level. It was all fought out at staff levels below them.
Great interview. I have liked them all, actually.
Mike.