No movement is either perfect or perfectly consistent, so the 'ills' of libertarianism don't prevent it from being a serious political force. What
does is that the Libertarian Party is pure amateur hour and has no idea of how to win elections or even of how to build itself up to the point where it could win enough elections to matter.
If libertarianism is ever to get a foothold in politics, concerned libertarians are going to have to create a new Libertarian party to chase the old one away. This means volunteering for party work with the 'pubbies or Dems to learn about the nuts and bolts of political organization, building a membership base and running candidates - successfully! - for state and local offices. Only after building up an infrastructure like the other parties have will the LP be able to take on the big boys.
You are correct in some aspects. The LP (which I am a member of) needs to raise money for candidates and such, instead of just trying to get new members. One of the reason The LP went to CPAC was to learn what you just said, to learn how to organize and win more elections. It is bigger than all the other "third" parties (600 offices held, I believe) but it still has a ways to go. They have local offices but not big state and federal ones. Libertarians are very smart at presenting ideas but not so well in running for offices.