You got it right. That is if you want the LP primarily competing with the GOP for new voters and potential activists. On the otherhand, if you want the LP primarily competing with the Democrats, then the opposite would be true. As a Libertarian, I want us competing with both. But as a realist, I say we have spent far to much competing with the Republicans, and its now time now we start competing with the Democrats again, at least enough to balance things out.
You seem to take the view that both parties are equally bad. I think that's nonsense. You should be doing what you can to help the Republicans and hurt the Democrats. I can't stand it when the LP tells the public and conservatives that it rejects both parties equally. It's destructive and unserious in regard to politics, smacking of bloated ego.