Agreed. Bush&Company wanted to purge the GOP of fiscal conservatives. This current crop of libertarian minded Republicans, want to purge the GOP of social conservatives. Either way, the GOP can't survive. That was the unique political foundation of factors to the Reagan coalition. The modern Republican Party can't exist without both voting contingents.
I think you're right. It's very difficult for social conservatives and libertarians to find common ground -- Reagan was so gifted that he managed to overcome the natural animosity between the two groups. Now, without a Reagan, I think our best bet for common ground overall is Constitutional adherence, fiscal conservatism, plus pushing social issues at a state and local level. That way social conservatives don't have to live with a porn emporium on one side and a crackhouse on the other, and libertarians can do what they like in the privacy of their own homes without having to worry about the JBTs breaking down their door.
And if they don't like the social mores of their current home, there's undoubtedly another city or state that will better suit them. That's what the founders had in mind, anyway -- a whole bunch of little laboratories of liberty (as defined by the local residents).
Of course, that won't happen, because everyone on this site is too busy pointing fingers at everyone else, and the rest of our less-interested-in-politics potential allies have fallen asleep in front of Dancing with the Stars.
:)