I've always had an irrational passion for Russian history, and I certainly agree, 'we' have nothing to fear from Putin or Russia.  Indeed, I consider myself to be rather impressed by Putin - I couldn't imagine Russia with a more suitable leader right now.

My reasons for admiring Putin are as follows:

When it comes to foreign policy analysis, I am always of the realist school - I like what works best.

I think it is important to recognize that Russia has no history of having any kind of economic or political liberty prior to the last twenty years.  Secondly, the Soviet regime eliminated the nascient middle class of the late-19th century so Russia doesn't really have much of a middle class either (or they didn't have one back in 1991).

With no history of economic or political liberty and no middle class foundation to build on, democracy (or rather, the representative electoral system we use in the West) is essentially non-functional.  Democracy must rise as a local 'grass-roots' movement or not at all (this same argument pretty much applies to Iraq as well).  One can even have open and even free elections and still not have a functional democracy.  Russia doesn't even have free elections yet (neither does Iraq). 

On this basis, I think it is unreasonable to judge the 'weak' democracy in Russia to be a failing of their politics, given the present circumstances.

And it is to be noted that criminal enterprises that tend to flourish in times of political instability do tend to produce good bourgeois capitalists in the second and third generation.  If one has no middle class at all, then a criminal class will tend to create one quickly (if other factors support it).

Also, I'd like to say that I am a firm believer in the principle that democracy grows best and fastest in a market economy.  Thus, it is important for Russia to develop a full market economy before engaging in democratic government.  South Korea supplies a good example of this process model.

On this basis, a lack of democracy or flawed democracy in Russia should not be considered a sign of trouble over the short or medium term (i.e. 5-20 years).  Building a 'free' market economy is rather tricky business and it takes some time.  Until then, Russia will likely be ruled by a corrupt form of democracy.  This is good - or rather better than all other alternatives.

And it is here that Putin deserves high praise indeed.  Like George Washington, Putin had the opportunity to just walk all over the constitution and stay on in power.  And like GW, Putin turned it down.  This is very, very significant.  Putin could easily have had the constitution re-written to allow himself a 3rd term.  But that would have been bad for the long-term development of democracy in Russia.  Putin slipping himself into the official #2 slot (Prime Minister) is brilliant.  It keeps Putin's trusted hands running the show, but it doesn't violate the constitution - and it sets a good example for the next 'Putin' who comes along to stand by the 'forms' of the constitution and the 'spirit' of the rule of law.