If Craig and Sali could both win their primaries and then go onto lose the general... oh, that would be a dream come true.
With regards to Sali, why would you presume that what the Democrats couldn't do in 2006, which will almost certainly be a better year for them in Idaho than 2008 and in which the race was non-incumbent, they could pull off and actually do in 2008. Barring of course some unknown scandal. Of course, if Sali were to be defeated in the primary, then another Republican will win.
Anyway, I suspect Craig will resign within a month and someone else will replace him. Just my gut. I say that after reading what happened today.