Apparently 16% of the Republican base are closet liberals. That could be a problem D:the only ones who think Palin is the GOP front runner are the liberals.
She has a large, dedicated support base. Also, there's been a split in the Republican Party which they need to fix. The best way to do this is to run someone on a change campaign (somewhat like Obama's promise to change Washington in 2008), and Sarah Palin seems to fit that image better than any other potential nominee.
I do agree though, the Republican establishment could see her as not being able to get enough of the Independent vote.
I don't not want her to run because I think it would mean Obama winning (I don't swing either way, it's possible she could win), I don't care. I doubt there'd be a significant enough change in outcomes for me to get worked up over it. Plus, Congress is where legislative power lies, the President can't pass bills on his/her own.
Would it be funnier? Sure I'd probably have a good laugh along the way, but I don't factor this into my assessment of Palin's chances in the slightest.