Those things I bolded are as silly as conservative claims that Obama wants to turn the country into a marxist state and throw all people to the right of Joe Lieberman into prison (Lieberman is a popular benchmark).
However, a dystopic 2000s is possible. If you want the US to be more militarized and make the War on Terror a hundred times worse, just make 9/11 worse. Let's say that Al Qaeda gets its hands on a single Pakistani nuke, and manages to detonate it in a major American city (probably NYC). Depending on the size of the bomb, anywhere from 50,000 to 200,000 people are killed. A major recession is kicked off because of the damage to Wall Street. The bomb is traced back to Pakistan, and the US demands that Pakistan disarm and turn over the factions within its government responsible. Pakistan refuses, and the US attacks (probably by taking out most Pakistan's nuclear arsenal and reactors, although some bombs are bound to survive). You can also expect a huge US retaliation against everyone else who supports Al Qaeda (Afghanistan). In this scenario, it's highly unlikely that Saddam will think that Bush is bluffing about the WMDs. Ironically, this might lead to the US and Iran working together, although they almost certainly wouldn't be allies because of US support for Israel.
So the US is more heavily invested into the War on Terror, and welfare/infrastructure spending is cut as a result. Then the US and Chinese housing bubbles both burst towards the end of the decade, helping to trigger a massive global recession. The Euro collapses, rising food prices help trigger a bloodier Arab Spring. Afghanistan and Balochistan are giant US military districts. Western Pakistan is either a crater or in a state of anarchy. India retakes the Kashmir region. With the economy in freefall, the Chinese communist party becomes increasingly belligerent towards Japan. Chavez's special brand of insanity takes root in South America, spreading to Ecuador, Peru, and Bolivia. So now the entire world economy is shot, the US is on war footing, China is turning into a giant version of 1980s Argentina, South America is crazy, the Middle East is in chaos, everybody is poor, and there are still a few old Pakistani nukes floating around somewhere to keep everyone on their toes.
That dystopic enough for you