Using social conservatives as the face of the party and exploiting cultural wedge issues has been a disaster for the GOP, who has been bleeding voters for the last 4 years.
New England can come back to the fold again (especially with the disaster thats coming in the next 4 years economically), but the GOP must reposition itself to its Reaganite roots, and subdue the Falwell elements.
Really, even under Reagan in total, the RNC/GOP has always been a bigger government, more tax party that blows off most everybody. They are the Chrysler to the Democrats GM.