Time travel is so different from precognition. On the island, he seems to have precognition, but aside from Desmond mentioning to his friends that he thinks he can time travel, I don't see much evidence for that theory. I see more evidence for his being able to see the future, though.
Those are such different concepts that I think this is what is confusing me about this episode. Just when I think I'm following the plot by thinking "he's seeing future events," he goes and says he can time travel!
And vice versa.