This is bad. On the other hand, SOTU responses are always bad. On an appropriate curve, I think she’s doing pretty well. But on another level, it’s just an impossible task; I think a sensible person would refuse to do it. In policy terms, I basically agree — S-CHIP good, global warming bad, etc., etc.
UPDATE: As many people are reminding me both in comments and IRL, Jim Webb gave a good response last year. Sebelius is, at any rate, better than such fiascos as Tim Kaine 2006 and Gary Locke 2003.