I sure as heck hope so.
I think this hurt McCain with conservatives, but it probably strengthened him with moderates. Watch McCain drift to the right as 2008 draws closer, more pro-life statements, vehement support for a conservative judge to replace Chief Justice Rhenquist, more hawkish comments on The War on Terror, more pro-Israel comments, and I'll wager he'll try to lead the push to make most or all of President Bush's tax cuts permanent. He wants to piece together a coalition of the following in order to win the Republican nomination in 2008:
1) Some conservatives
2) Moderates, both Republicans and democrats
3) Independents
He calculates that with this group he could win the nod. I think he has a chance, but it will be tough for him if he faces a good conservative candidate (George Allen I hope).