It's a good choice. I've been a fan of Shinseki for a long time, and posted a few months ago that he'd make a fine secretary of Defense. (Although in retrospect I think it's a good idea that Obama recruited Bush's second Defense secretary, given that we're at war, or wars actually, just now.) I think Shinseki would also make a good choice for Veteran's Affairs, and I think it's a fitting honor for a very honorable soldier, even if he is gay.
Wonder if he even wants the job? He's probably miffed, but I imagine that being secretary of veteran's affairs must beat selling insurance and advising bankers, which is what he has been doing ever since he pissed off Rumsfeld. I suppose he'll take the job. And he'll probably give ol' Donald a well-deserved middle finger. Wouldn't you? Living well is the best revenge.