I would point the readers to an interesting point of view expressed by Glenn Beck (yes, Beck!).
Picture a horizontal straight line. On the left end is 100% government or totalitarianism. On the right end is no government at all or anarchy.
The founders orignally designed a government that was just to the left of anarchy (the far right end of the line). It was governed by the Articles of Confederation. But that didn't work.
So they moved a bit to the left on the line, but still quite right of center, and drafted the Constitution. That is where we started.
It served us well for a while, but in the 1890s or early 1900s, under the progressive movement, the country began to creep leftward along the line. That creeping accelerated with the New Deal and continued leftward with the Great Society. It continues today with our apparent march toward socialism under Obama, until on that magic horizontal line, we now find ourselves well left of center on the line and trending toward totalitarianism.
As far as the two parties go, they are now basically at the same left of center point on the line (in other words, there ain't a damn bit of difference between them). To distinguish their cosmetic differences, you need to go to a vertical line. Put democrats or republicans on the top or bottom - your choice - it doesn't matter. Use it to distinguish their differences on social issues. The point is that they're on the same place on that horizontal plane.
To revive the republican party, it is going to have to redefine a point on that horizontal plane that is back to the right towards the Constitution. It need to establish and ennumerate goals for the size and scope of the federal government and reestablish what is more appropriate to be decided by the states. Some individual states, Texas for one, are realilzing that the powers of the federal government are way out of control and enacting legislation that bring them back in line with the original meaning of the Constitution.
The republicans have to once again recognize things like states rights (no racist connotations meant or accepted) and local school control and start to reject things like federal mandates that are not enumarated in the Constitution.
Only when republicans once again become the party of limited government, lower taxes and strong national defense will they have a chance at a party revival.