"I don't think Bill Jones is ever going to get the job..."
Jones didn't raise enough money to really stand a chance against Boxer in 2004. I agree with you that it would be very difficult for Jones to defeat Feinstein, but if in 2006 the GOP nominates Arnold for Governor, McClintock for Lt. Gov. and Condi Rice for Senator, I think it will motivate members of all wings of the CA GOP to go vote and lead to a victory for all three candidates.
If Rice decides to forgo the Senate race and stay as Secretary of State, then our best candidates against DiFi are probably Congressman Cox (unless he would rather be a federal judge) or Congressman Dreier.