Working to retake the Republican Party is only worthwhile if you have another Calvin Coolidge and like-minded libertarian conservatives who are willing to cut the Federal government.
Palin is no Coolidge, unfortunately.
Her statement--on the record--, when combined with her PAC's support of Graham, McCain, and Murkowski, is sufficient grounds to support such an assertion.
She has allied herself with the present Republican establishment, which *IS* the problem.
So what is your answer, what should we do in your opinion
Determine what our "certain fundamental beliefs"--our core principles--are, and publicly declare them to be true and worthy of our support.
These should be beliefs which, to paraphrase Reagan, "must not be compromised to political expediency, or simply to swell [a party's, or a faction's] numbers."
It is important to note that obtaining agreement on a number of principles is increasingly harder to do as the number of principles increase; so, at the Federal level, I would suggest that there only be two or three "fundamental beliefs," namely adherence to the Declaration and to the Constitution, adherence to the rule of law, and a willingness and an eagerness to reduce the Federal government to a minimal size, thereby restoring the rights and the freedoms of the States and the People.
When I find Republican candidates who support such things, I will support them; otherwise, I will feel free to look outside the Republican Party for candidates who support such things.
Now, you praise Reagan from time to time, I find him to be a great president, and he worked within the party. He is far superior to Coolidge as an example in my opinion. His "three legged stool" is a set of principles I adhere to. Those are the principles we can bond around, and it's pretty clear to me that Sarah is the only electable politician that follows all three.