If Rendell wins in November, the gains may very well be squandered. And we can kiss any chance of desperately needed school or tort reform goodbye. I see the Democratic Party as irredeemable. I don't feel that way about the GOP. I wish you luck anyway.
Likewise I'm not familiar with the Penn. situation however I must ask you this: when you do the math in terms of what the GOP has given you through tax cuts, less regulation etc. in some areas and compare it to what they have taken from you in other areas do you really come out ahead? Take a long hard look at what their agenda has really accomplished at both the state and federal level; sure they cut SOME taxes and reduce SOME regulations (one could argue the Democrats do the same in other areas) but my contention is they give with one hand and take with the other, so you really don't make any progress at all.
In fact you actually LOSE ground when you add up the programs like the War On Drugs that both parties support. The costs of that war (like the Democrats' war on business) are passed on to each and every one of us, whether we use drugs or not.
Contrary to both parties' anti-drug propaganda they are not protecting us from the ravages of drug abuse. The black market their War On Drugs has created costs us an incredible amount of money and of course even more in terms of lost freedom. This is why the Libertarian Party emphasize the decriminalization of drugs as much as it does, and I believe should continue to do. Contrary to conventional wisdom this is our best wedge issue to use against both parties since both are equally to blame for the War On Drugs. Democrats have an (unearned) reputation for being more sympathetic to personal freedom while Republicans have an (equally unearned) reputation for being sympathetic to economic freedom. In truth, Democrats have little use for personal freedom outside of the abortion issue which is not an example of personal freedom anyway since it involves taking an innocent life, the ultimate deprivation of that unborn child's freedom. Republicans are equally contemptous of economic freedom as they bestow lavish subsidies and tax breaks on favored industries while helping them restrict competition. The success of both parties has a lot more to do with fear and disinformation than with principle.
Both are masters at controlling various interest groups by doling out political favors, making each group think they're getting something for their constituents when in reality these people would do a lot better for themselves with a Libertarian government. Then they wouldn't have to waste so much time, money and energy keeping the other guy (Christians vs. gay rights activists, blacks vs. whites, rich vs. poor) from using government power against them. It is not the abuse of government power but the power to abuse that is the problem for these groups and ultimately all of us.