Given all the tactical negatives (and how severe they were,) it’s actually quite encouraging that the outcome wasn’t much worse (for Republicans.)
Democrats are, to nobody’s surprise, greatly misreading the results of the election. George Bush has managed to irritate many people who agree with him on many issues by screwing around with bailouts and amnesty. This is why his approval rating is 20% or thereabouts. It doesn’t mean that 80% are diametrically opposed to Bush’s policies, but it does mean that 80% of people are disappointed with one or more of his actions. It would’ve been nearly impossible for a Republican to win this election solely because of the squishy middle who would oppose the Republican candidate regardless (and many did).
Add to that John McCain, a weak candidate in the first place, supported amnesty and bailouts - the same things that pissed off many Bush supporters in the first place. Right or wrong, many of the squishy middle who supported Bush last time became disaffected with McCain for those two issues.
Statistically speaking, it’s also extremely difficult for one party to hold the White House for three consecutive terms. Jesus himself probably couldn’t have won reelection following Bush.