The Galvin Opinion makes a very good point. Bush may have lost New York and New York City, but he did increase the number of votes he got.
As Thomas Galvin points out:
The fact is that 544,359 votes were cast for President Bush in New York City. That is more than votes cast for Bush in the entire states of Alaska, Idaho, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, West Virginia and Wyoming. Those 10 states accounted for 39 electoral votes.