The problem is how far the nation has moved to the left, in both parties. Policies that would have been considered far-left even just ten years ago like fag "marriage", arresting people for desecrating the Koran, tuition for illegal alien students, and graphic sex ed for early elementary students are now tolerated by most voters. I am sure "reparations" for schvartzes isn't far behind.
Voters simply fear the bogeyman of the "far right", such as Michele Bachmann, over the reality of the extreme left, such as the head negro in charge of our country. Voters might not truly like Obama but they are terrified at the notion of the so-called "religious right" taking away their ability to screw whoever they want to (or whatever they want to), murder their children at will, not look at porn, etc. (not that any Republican leader will actually be able to do those things, but I digress). And more than anything else in the whole wide world, they are scared to death at the (appearance of) being "racists".
So... long story short is that a Romney-like candidate might be the best we can possibly get these days. Conservative candidates really poll horribly with under-40 voters these days--even registered Republicans. This is why Huckabee lost states he should have handily taken in 2008 such as South Carolina, and likely would have in 2004 had Bush not been the incumbent.