Actually, all Kerry has to do at this point is hold his ground for the next 8 months and he wins. Not that he can necessarily do that, but Bush has to make headway, not Kerry.
I agree with you on many things here, but I will differ on this one. Kerry has to do more work - holding his ground does nothing for him IMO. While President Bush may be behind in several polls, you still have to treat him as the favorite because his path is so much simpler than John Kerry's. All Bush needs to do is win the same states he won in 2000. Kerry has to regain 1-3 states and hold onto the the states that Gore won. Gore won 5 of those states by a very, very slim margin. That will take a lot of effort. Kerry is clearly vulnerable in Iowa, Minnesota, Wisconsin and New Mexico (32 evs). I think he's safe in Oregon, Michigan and Pennsylvania. If you take the worst case that he loses the 4 vulbnerable states, he needs to make up 42 electoral votes to win. Winning Florida and Ohio gives him 47. Winning Ohio, Arizona, Nevada, West Virginia and New Hampshire gives him 44.
It's a tough path! But, I believe!