One can hardly avoid agreeing with Kunstler's conclusion that the U.S. automakers are doomed one way or another. That is, their current business model is doomed--SUVs will never sell at a profitable level again.
But there is a difference between an "orderly" and a "disorderly" "unwinding", as economists would put it, of the idiotic investments our country has made. In order to allow an orderly unwinding at this critical juncture, we have to bailout the auto companies so that they may have at least a chance to morph into something more sustainable.
If a "disorderly" unwinding sounds maybe not so bad to you, consider that economists, in their bloodless way, would call World War II a "disorderly unwinding" of the Great Depression. Order, it turns out, is a very precious and fragile thing.