I believe you are misrepresenting Levin's position. He's not "championing a failure in negotiations" and isn't advocating that we maintain the debt ceiling at its current level. He's urging Republicans to stand firm to their committment of reducing the size of government. He's urging Republican leaders to not budge on its "no new taxes" pledge and to not be swayed by Obama's insistence that unless taxes are raised, the economy will collapse, there will be no social security checks, etc.
He's saying... call Obama's bluff. Stand firm. Don't cave. Don't raise taxes. Should Obama push the issue past Aug 2nd... Again, stand firm, don't cave. Life will suck, but we can get through it even if it takes a month of sacrifice.
He's calling Aug 2nd liberation day because - if the Republican leadership holds firm - come hell or high water we'll start to turn the clock back on spending.