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The problem wasn't FEMA per se, it was who was in charge of FEMA. Under Clinton, FEMA ran reasonably well, as I recall. He staffed the place with people who actually what they were doing. (Imagine!) Creating a new agency with a different name and run by the same Keystone Kops rejects means that we will have new agency with a different name and run by the same Keystone Kops rejects. The net difference will be that we will have spent millions on new letterhead paper, repainting trucks, and stuff like that. Swell.
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FEMA worked under Clinton and James Lee Witt.
Update:
The Rethug mindset behind this, from Digby.
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