IMO, Palin comes off very well vs Hillary. Palin vs anyone else, I'm not as confident. For better or worse, the MSM has done an excellent job of marginalizing Palin. I'm not sure that she's electable, at least in the short term.
I don't like it, I just call 'em like I see 'em.
What I'm hoping for in 2012 - regardless of what the Dems do - is that someone comes out of nowhere for the Republicans. If they follow the usual protocol and run a re-tread like Romney, McCain, Huckabee, etc....frankly, that turns any race into a tossup.
There are plenty of good people waiting in the wings. Jindal has been trying to get some spotlight lately. I keep hearing the name "Pawlenty" kicked around. And FR certainly likes Jan Brewer or Chris Christie, though I'm unsure that they'd make good presidential material. A couple of good speeches does not a president make - see our current fearless leader for proof of that.
People who've bought in to the MSM attacks on Sarah Palin weren't ever going to vote for her in the first place. They only needed the rabid MSM to give them a justification to despise and oppose her.
Then, there are those, like me, who understand these attacks for what they are, and lend them no credence. I've looked at Palin with my own eyes, and have chosen to support her, according to my own conclusions.
Lastly, there are those who have had their affinity for Palin alloyed by the scurrilous attacks in the press. These are the doubters whom she'll have to convince, which is normal in politics. If anyone has what it takes to draw supporters to her, I believe it's Sarah.
Over the next year and a half you can expect to see support for her climb and climb. That's my prediction.