2) Why are they not EXCLUSIVELY running candidates in lower office positions until they have at least 1/3rd representation in state houses? Isn't this the way to determine if policies appeal to people -- seeking to represent them where they live?
This is an excellent point. However, most people, whether you want to admit it or not, don't know much at all about who is running for local offices. Most people do, however, closely follow national elections. The CP will never gain more support if people don't even know about them. By running candidates for national elections they are at least able to get more people asking questions about them. They may not make much of a dent in national elections right now, but by using any opportunity they can to let people know that they are there they can use this publicity to garner support at ALL levels.
If all that is sought is to attract attention, then attract it in Democrat districts. Attention given can be particularly negative. How do you think Ralph Nader is viewed by leftists nowadays? Have a look at his results in 2000 and then 2004.
Bump to that!