The military still has massive power in Egypt. Right now you have a power play between the MB, the military, and the secularists. This will keep going on for awhile, I'm sure. The process of creating a new government from scratch is never pretty.
So you have to look at it in that context. Mursi was trying to stop the courts from dissolving the government again.
Anyway, what's the big deal? He made a statement, the public got pissed, and he had to walk it back. Isn't that how democracy works?