Nothing from Cheney is said in a vacuum. There's some reason he's saying this publicly, now. He seems to be trying to shut Palin up, force her out of the picture. It's not entirely clear why, unless the GOP is afraid that she's somehow going to screw up the election, or the selection of the VP. But there's some calculated reason that Cheney is saying this
now.
From Jonathan Karl at ABC News:
“That one,” Cheney said, “I don’t think was well handled.”
“The test to get on that small list has to be, ‘Is this person capable of being president of the United States?’”
Cheney believes Sarah Palin failed that test....
"I think that was a mistake.”