You've got it completely wrong. Knowing that California was about to rise up and dethrone their liberal Governor, the only way to maximize the chances of having another liberal in office was to run a well-known, well-financed RINO candidate. That way, if Bustamante doesn't win against the RINO, at least there is still someone only slightly less liberal in office. Liberalism only loses a few yards instead of giving conservatives a touchdown. Arnold "I think Gay Marriage is something between a man and a woman" Schwarzenfaker serves that role perfectly. He's distracted most of the Republicans - even some of the conservative ones - and divided up the GOP vote to ensure a RINO or Democrat victory.
The liberals even have FReepers carrying their water as they spend all day telling everyone that a vote for the conservative is wasted. The liberals learned from the 1966 election in California - too bad the conservatives seem to have forgotten.
Well said spiff!
Considering the reason for a special election in the first place, one has to assume the Democratic party see's that they are loosing the battle in the first place, with "Gray-out", and if they had any political interest (LoL's!)in the outcome of this special election then sure they are going to stay on the offensive and gain as much ground as they can even if it's a small gain, it would be better than forfeiting the game.
A vote for Arnold is a vote for saving what's left of the "self-destroyed" liberal agenda. It may be a small gain for them, IMHO, but it beats total copitulation on their part.