On a strategic level the conflict is mind to mind. On a tactical level the goal is to disjoint expectations and sow fear, uncertainty, and doubt. Horowitz is very good at this. Elect him Governor. Do not elect someone like Ann Coulter as she is all stick. The carrot is needed in one hand, the stick in the other.
Corrupt your enemy, do not be afraid to bribe his supporters.
Have very much better intelligence about him than he has about you.
You can only change yourself and how you see reality, that is learn. If you can change yourself fast enough you can win.
On the very short term, Schwartzenegger intends to bribe the Democrat's supporters. This is good tactics. "Divide and Conquer" is true as always.
My take is this is exactly what is happening to conservatives in the Schwarzenegger candidacy.