Isn't that basically SLS?
Not really. SLS has some key distinguishing differences from DIRECT J130/246, which is in turn different from LV 24/25. LV24/25 was a 1.5 stage vehicle: 4-seg SRBs, plus a near-stock ET with 3xSSME, no upper stage. Capacity would be about 70, 75 tons to LEO. Quickest, cheapest option. Apparently, this was about $2b in total development costs, and predicted to be not only fast, but capable of development and even production without interfering with Shuttle operations. J130/246 is the same kind of lightly modified Shuttle ET as core, but with 4xSSME instead of 3, and additional development of a large upper stage. Capacity without this upper stage remains about 75 tons, but with it it rises to 130 tons. Core dev is almost the same, but when you have the funds to develop the upper stage, you don't need to redevelop the core to accommodate the increased 4x engines to have the thrust to lift it. LV24/25 is best for LEO-staged program, while J130/246 is good for directly (haha) going places.
SLS is a more complex beast--it has the 5-seg solids, which add years of development and a lot of cost. Why have it at all? ATK threatened to kill its entire segmented solid business in a sort of scorched-earth negotiating tactic unless their development was supported, so at that point Griffin (and SLS designers) figured it was the best they could get. OTOH, it also means that you're better off stretching the length of the core, as well, for better balance, and your cost and development timeline balloon.
As long as you somehow avoid the 5-seg boosters and stick to the least-changed core, preferably the 4xengine version, then you could probably indeed make a first flight by 2011 or 2012. Actually funding Orion to completion and getting Altair to be more than a paper payload might mean that it ends up being about as costly as OTL Constellation, but in 2008 when Obama comes to office it's actually producing, and the word is "we can do this on budget and on-time" instead of OTL, where it's very consistently been that another $3b per year is needed to actually achieve the goals. That might be enough to save it from the 2010 budget fight, and a 2020-or-slightly-before moon mission sounds plausible. I was hopeful that SLS might actually be this, but the commitment to 5-seg and a stretched core really has hurt it a lot.
ISS is an interesting question. No single partner can unilaterally splash it, but if the US pulled out, then you are looking at a case where Russia, ESA, and JAXA would be unable to fund it by themselves. I'd hope to see it saved--maybe you see commercial crew viewed less as a threat, so it gets its requested budgets instead of consistent short-changing and attempted legislative interference by congresspersons in districts related to SLS? That'd be possibly online in 2015 or so, then, and could save substantial costs, perhaps enough to keep the station alive while lunar missions are ongoing. Another option would be that with this SDHLV appeasing the Utah politics faction, you can also get approval to stick Orion on a Delta IV Heavy and you can use that for ISS pretty cheap.
The question of what you do after a few sorties, though, is a whole other kettle of fish. Finding the money for a lunar outpost, or a Mars program...well, that's a real challenge. Ironically, this is sort of similar to situations I've been wrestling with with Workable Goblin for Part IV of Eyes, so...I've given the questions some thought.