The prison images are the new image of America to those who were previously neutral or suspicious of the US.

One of the new images. Not all. Certainly doesn't help in the winning of hearts and minds.

The abuses were encouraged at the highest levels of the Administration.

Crapping all over the Geneva Convention does not help, but your phrasing suggest that the administartion actively encouraged the use of numiliation, degradation and torture.
Got proof? I'll wait for an investigation thank you.

There was an active coverup in the form of ignoring credible reports.
Again, got proof? I think it was more incompetence than any thing else, coupled with a tendency to stick one's head in the sand and shout LALALALA at the first sign of bad news. (Reminds me of certain posters here, both left and right)

They were systemic, occurring thoroughout the American prison system in Iraq.
Leave out the words "in Iraq" and I'd probably agree. ;-)
Right now, there is still no indication that this is systemic.

There were perpetrated mostly upon innocent people.
This claim seems to be based on extrapolation from the 90% innocent detainees report from the RC. This is not self-evident by a long shot.

And the Bush Administration will try to screw some poor enlisted personnel to the wall in an attempt to cover their own asses.
Possibly, but this is suppostion rather than hard fact.
But the guys who actually carried out the abuses and their superiors who condoned it (when proven) deserve to be screwed, and royally. You might want to rephrase this sentence. You sound like they were just innocent parties.......

Opinion - they will start to work their way into officers, company grade, field grade and then general officers so as to protect the initiator of it all, Rumsfeld at the urging of Cheney/bush.

Bowser, it was all opinion, just about every word you wrote.
This is why you drive people up the wall. Not because you make such brilliant arguments that cannot be refuted, but coz you make stuff up, extrapolate, suppose and construe and then present it as fact.
I think you have as good a handle on this as say, the Condescendenator below. (i.e. not much at all)

The political leaders of this country will voice acceptance of responsibility while not accepting it.
And it's the innocent who suffer. Not the guilty.
It's like the situation - it's a goddamned no-win tragedy.

At last we can agree, though perhaps for differing reasons (or even meanings)....