A Pucker Up Factor          - IBERIA at Bilbao
Judging from the pictures above, from the TDZ to the point of lift-off is less than 70 meters; therefore the action sequence was less (far less) than a second. Therefore: good reflexes captain!
Second attempt failed? GO to your alternate please! Accidents happen always the third time around. An IB 320 was written off there at Bilbao a few years back (see accident report at tinyurl.com/39wo3c - or see below).
If the rumor mill of the day was accurate, Airbus admitted some programme short-comings in the fly-by-wire when dealing with conditions like these.
Landing/go-round was around 14:15 UTC... Looking at the METAR for LEBB around that hour...

LEBB 151300Z 20019G33KT 150V240 CAVOK 16/05 Q1005 NOSIG=
LEBB 151330Z 20020G37KT 140V250 CAVOK 16/05 Q1005 NOSIG=
LEBB 151400Z 20023G38KT 160V240 CAVOK 17/05 Q1005 NOSIG=
LEBB 151430Z 20029G45KT 170V260 CAVOK 17/05 Q1004 NOSIG=
LEBB 151500Z 21027G48KT 140V260 CAVOK 17/05 Q1003 NOSIG=
LEBB 151530Z 20026G42KT 160V230 CAVOK 17/04 Q1003 NOSIG=

...we can see that it was "windy" and also "a bit too much" variable!
The smoke is indeed from the tires. Watching the sequence it looks like a crosswind denture rattler that caught a gust just at the wrong moment. Still, all in a day's work eh?
Excellent photos, however with the significant wing drop ,no attempt seems to have been made to pick up the wing. No aileron or spoiler deflection seen. I am aware of A320 auto wing level function and the need to be gentle with the sidestick to avoid a PIO in this scenario but would be interested to hear whether a short term rapid right sidestick input would have helped to reduce the tip to ground proximity.
From 2 of the passengers on board: the aircraft made 2 attempts to land - but both resulted in go-rounds. They then diverted to Vitoria which was very gusty too, especially for a non precision or circling approach on runway 22, which was the runway in use.
Date: 07 FEB 2001
Type: Airbus A320-214
Operator: Iberia
Registration: EC-HKJ
C/n / msn: 1278
First flight: 2000
Engines: 2 CFMI CFM56-5B4/P
Crew: Fatalities: 0 / Occupants: 7
Passengers: Fatalities: 0 / Occupants: 136
Total: Fatalities: 0 / Occupants: 143
Airplane damage: Written off
Location: Bilbao Airport (BIO) (Spain) show on map
Phase: Landing
Nature: Domestic Scheduled Passenger
Departure airport: Barcelona Airport (BCN/LEBL), Spain
Destination airport: Bilbao Airport (BIO/LEBB), Spain
Flight number: 1456
Following a nighttime flight from Barcelona to Bilbao, the crew positioned the plane for a runway 30 approach and landing. During their final ILS approach, the aircraft encountered heavy turbulence at about 200 feet agl. with gusts up to 65 mph. The aircraft encountered windshear with 1.25G updraft, downdraft and a tailwind gust at just 70 feet agl. When the Ground Proximity Warning System (GPWS) sounded, the captain called for a go-around while pulling on the sidestick, reportedly without pressing his priority control button. The combination of dynamic winds and the crew actions created a situation that triggered the airplane's alpha protection system. As the crew applied TOGA power for a go-around, with both pilots pulling back on their sidesticks, the alpha protection law reduced the elevator nose-up command. Instead of a go- around, the aircraft struck the runway with a vertical speed of approx. 1,200 fpm. The nosegear collapsed and the aircraft skidded 3,280 feet (about 1000m) down the runway before coming to a stop.


Follow-up / safety actions:
This incident prompted Airbus to develop a modification to its flight control software. It will prevent the airplane's built-in protection against stall from being activated by a high rate of change in angle of attack. As an interim action, an AD was issued requiring A.320/A.319 operators to fly at least 10 knots faster and to use only a setting of "CONFIG 3" during approach with gusts higher than 10 knots or when moderate to severe turbulence is expected on short final.

from this link