I agree: what Hitler really wanted from Britain was permission for a free hand in Eastern Europe, most especially against Hitler's then ally, Stalin.
In exchange for Britain's permission, Hitler was willing to leave the British empire untouched.
And that is the core of Pat Buchanan's argument, as well as our own PAR35 -- that Britain should have at least given Hitler what he wanted in the East, if not actually join him in defeating the "real enemy," Stalin.
I'd say one problem with this argument boils down to two words: Churchill and Roosevelt.
Both men had been high government officials during the First World War, and from that, both considered Germany their natural enemy and Russia an ally.
That Russia was now Communist disturbed Churchill greatly, but Roosevelt not in the least.
Roosevelt didn't know about, or didn't consider Stalin's mass murders an important fact in the global geo-strategic environment.
In Roosevelt's mind, Stalin was a potential ally to be won over to our side, not an enemy to be feared more than Hitler.
Churchill was for years conflicted over which was the greater threat -- Hitler or Stalin.
But in the end, Germany was by far the closer enemy, and the more aggressive, while Stalin represented an absolutely necessary ally to defeat Hitler.
Therefore, Hitler's attitude and approach towards Britain was nothing short of delusional.
And it was neither the first nor the last delusion to afflict Hitler's brilliant mind.
And "delusional" is also my description of Pat Buchanan. ;-)
I do believe that had it not been for The Blitz, that over time more Brits would have favored making the deal with Hitler, and probably would have voted out Churchill, in favor of a leader who favored making the deal.