Then why have they fought them at the national level for so long then? Even if they could be convinced to simply pursue these issues at the state and local level, they would still inevitably come into conflict with liberals and libertarians because even if your using the state government to promote, endorse, or compel religious beliefs, or to legislate morality, you are still trying to use the government to further a religious agenda or legislate morality. Thus, liberals and libertarians are still going to take to the federal courts, and its thus you are back to trying to fight this at the national level.I also think that many social conservatives - probably most, really - would be fine with leaving social issues to the state level.
Right now you have Texas Social Conservatives trying to use the state's public school system to further their evangelical Christian beliefs. Even though those social conservatives are working at the state level, do you honestly think that it wont eventually be litigated in the federal court system?
Privacy and a separation of church and state are core to civil liberties, its not something that will be glossed over.And libertarians do sometimes disagree with conservatives when it comes to privacy and religious issues, but that is as ambiguous as I said everthing but drugs and gay marriage is.