Can he hold his own in a debate: Yes
Can he win an election: Only under Depression like circumstances.
How about under lingering Great Recession circumstances? That's what we'll almost surely be facing...
The answer is, yes, there are other candidates more palatable to swing voters, but since the GOP isn't about to nominate Huntsman, but Gingrich still could win by passing the "credibility" threshold by a few hairs and running with the bad economy as his de facto running mate.
I do agree with you. I think a Gingrich v. Obama race will be close no matter what, but I think the edge goes to Obama. Now maybe I'm wrong, there have been instances where the candidate everyone thought would lose, or deemed unelectable won. 2012 is not an ordinary election year, so I don't think it's over yet; in terms of shakeups and surprises.
I do believe Gingrich is the last of the "Anti-Romney" candidates and will be the conservative challenger to him going forward.