Wrong on both counts. The author is guilty of not doing his homework, but instead projection his own presumptions. Keyes was selected because the Illinois Reflublican party's moderates, having blown the entire election and having seen their own candidate go down in flames in a sex scandal, decided to turn the selection of the party's senatorial candidate over to the rightmost part of their party they could find in order to discredit them when they lost. Said group, being nuts, promptly fulfilled this expectation.
It was all local politics and had nothing to do with the national Republican party, who would have done anything to prevent it.
I think they wanted to find someone who would draw some attention to the race, to get out the message, and to get some attention. There was a near-zero chance of any IL Republican beating Obama, and I have to salute Keyes -- he knew he would lose, but he was willing to take that hit to get the message out. Might as well bring in a national celebrity and make it a proxy fight, because where else are you going to take it?
If you can't win, lose loudly, strongly and without apology. If Goldwater hadn't been smeared and smacked down as he was, the way wouldn't have been paved for Reagan.