Why does it seem "weird" to you?
Perhaps for this reason...
Average Joes -- or Diggers, for that matter -- out there might want to contemplate: What, exactly, are the qualifications for these top jobs in Washington and elsewhere? For example, take a look at Wolfowitz's resume: ambassador, Asst Secy of Defense, now soon-to-be (likely) head honcho at the World Bank. How are these related?
Answer (IMO): These aren't "jobs" at all, really. More positions, figureheads. With very good pay and perqs. Typically the only "qualifications" are fealty and sycophancy, which the less cynical might name political reliability.
Compare to your own professional life.
As to the choice itself, watch Bush closely; I often detect a mean glint in his eyes, as opposed to his often folksy public persona (ala Reagan). Bush well knew how this choice would be received in some quarters, and he was probably all the happier about it.