I'm imagining this election (08) as potentially similar to Blair in the UK in '97. In other words, tonnes of Republicans/Independents repent for the last eight years, or if you want to go back further, the broader conservatism of the past decades, by going for Obama. To that end, 2012 will be the last throw for the right wing of the GOP, before they realise in 2016 that they need to moderate to win, not unlike Cameron is in the UK now. So with all that in mind, one of the more lunatic southern Senators or Governors may throw their hat in the ring, but Romney won't because he's afraid of being creamed, Huckabee won't because he's a reasonable and smart guy and won't want it, Palin won't because she'll be laughed out of every gymnasium in Iowa she goes to by then.
Of cause a lot of that is dependent upon multiple variables which may not turn out the way you envision.
A. Obama wins in 2008. Very Possible
B. Obama becomes the most successful President in the last 30 years. Unkown
Obama could become the worst President in history for all we know. There will be tax hikes in Obama's first year in office especially with such a large majority in Congress. That alone will rally conservatives. Plus suppose the economy doesn't recover or recovers very slowly and those same conservatives are able to paint Obama's taxes, especially on Capital formation, as the cause for the continued economic problems we could perhaps see a speedy recovery for the conservative movement.
Anything can happen. So it may be premature to predict the demise of Conservatism.
