The President seems to genuinely believe that if a Grand Bargain on taxes, spending and deficits can be reached, then Republicans will be placated enough to be reasonable on other pieces of the Administration's social and economic agenda.
The President's assumptions secondarily presume that if Republicans were to see their deficit objectives fulfilled, they would be placated enough to be reasonable when considering the President's other policy goals. That, too, requires a suspension of disbelief. The history of the Republican Party over the last few decades has shown that any giving of ground is considered not a good faith effort at quid pro quo negotiation, but rather weakness to be exploited by further demands.
Anyone who disagrees please say so now.
Significantly, it also presumes that making concessions to Republicans on taxes, deficits and spending is worth their cooperation on other issues such as immigration. Unless Republicans were to play against type by cooperating on significant action against climate change (a highly unlikely scenario), such trades would almost certainly be counterproductive to the overall interests of the American people even if they were possible.
But it appears that despite all evidence, the President believes that political reconciliation is somehow possible, and that a chastened Republican Party will come to the table as a legitimate negotiating partner once the deficit is taken off the table as an issue.
All evidence to the contrary, Obama still believes there are rational Republicans in DC that he can work with.
This could be the fatal flaw the prevents Obama from enacting policies that lead us to the heightened goals in his plainly progressive inaugural address. The irrational desire for bipartisanship by him and his Democratic legislative partners, with a partner that does not negotiate in good faith and is diametrically opposed to almost every proposal, is far more prevalent in Democratic circles than in Republican circles. It's especially acute in a president who is hated by Republicans.