Ideally, I'd like to see sequestration pass but with an amended implementation plan that allows some reallocation of the cuts within a larger budget group. The department-level is probably too high. The problem with this idea is two-fold: (1) politicians will never go for it or propose it and (2) it would take too long to implement. Already the 45-day notice of furloughs have been sent and the 30-day notices are coming soon. All those liberals who said that sequestration and the associated layoffs within private companies (and President Obama's promise to bypass the WARN Act) was a bunch of nonsense. And what layoffs didn't happen, I'm sure those companies cut back on hiring which has not helped the economy - just look at the 4Q2012 GDP number.
It would be interesting to see what would have happened had we had a federal budget for the last three years that provided some controls over the federal spending and allowed for some future planning by both the federal government and private industry. Somehow, I think that the economy would be in a better place and sequestration would not be an issue. Not that I'm pointing fingers.