The Republicans don't just believe their own press clippings, but they also are only reading papers before 2006.
What I mean by that....is that they are on a campaign to rid out moderates, at a time when the party is already borderline irrelevant. At a time when they should be heading to the middle, compromising, in order to build a bigger and more robust party.
The party has a lockstep mindset since Bush, and is completely inflexibl to the realities of the world today. We have a nation in economic crisis unlike ever in most people's lifetimes, and they are playing partisan games on the stimulus bill (when 4 were passed and signed under Bush for far smaller downturns).
If things don't change the Republican party will be a small regional party confined to the Southern USA.
One other note.....this trend is not new. We saw it starting in 2000, by the mere fact that Florida (a southern state) was close (very close).
The reality is that the whole Republican 'surge' of 1980 (Reagan) thru 2000 (that lead to Bush) was based on two primary factors:
The Civil Rights movement backlash. Reagan ran complaining about welfare queens, but was basically feeding off angry whites. The problem here is that racism is dying. The north and west are solid blue. The south is taking more time (and we all know the history there), but the trend is clear on this issue.
The Republicans also hatched onto the de-politicized issue of Abortion (the Courts 'solved' it with Roe vs Wade, effectively Judicializing it)....it became an issue Republicans could run on, and never do anything about it (cause it's a court issue after Roe v Wade - they are powerless). Those who opposed abortion could feel good for someone who openly opposed abortion, but would do nothing to stop it. Fiscal conservatives and monied interests could care less, even if they were pro-choice, cause Republicans couldn't do anything.
Bush managed to extend the Republican advantage past 2004, by starting a war, but killed off the one minor advantage the Republicans had before that....by choosing & waging the war incredibly ineptly.
So, now we have Florida as solidly blue (look at the 08 results). Virginia solid blue. North Carolina blue. Georgia within reach in 2012.
And what are Republicans trying to do to turn things around? Chase the last few moderates out of the party. Put up real conservatives for certain defeat in solidly blue places like Pennsylvania.