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Yes, it does, when that Democrat has the most liberal voting record in Congress. Obama opposes just about everything that the Republican party stands for, and his election is going to take the country away from Republican principles.
The Republicans don't stand for supposed Republican principles. Bush sure made government smaller and was fiscally conservative, wasn't he?
A fiscal conservative doesn't currently have a party. Powell strikes me as likely to be a social liberal and fiscal conservative. If you want to drum all those types of people out of the Republican party due to a desire for Christian ideological purity, have at it. The Republican party will simply continue to be marginalized. You don't win elections by shrinking your party more and more.
Of course, I do see your problem. A strong Republican party (one that embraced limited government [oops, no crusades against gay marriage] and fiscal conservatism but discarded religiously-driven troglodyte social policy) is one you'd have no use for. You don't want the Republican party of Abraham Lincoln, Teddy Roosevelt or Ronald Reagan...you want the Republican party of Rush Limbaugh and Sarah Palin.