Let's put this into context: Yes, Time has Bush up by 11 among likely voters (or up by 10, according to Polling Report, though Newsweek has Bush up by 11). That's bad. But....
Let's look at 2000. Newsweek had Bush up by 11 in early August (just after the Republican convention). Then Newsweek had Gore up by 10 at the very end of August (a couple of weeks after the Democratic convention).
We know how that one turned out, right?
CNN/Time had Bush up by 14 on August 10. That wasn't exactly predictive either.
Bad news, yes, but this is a very reversible lead.