The GOP rank and file does not yet believe that we are broke. They believe we can fool around with the "entitlements" to balance the budget. They LOVE the warfare state. They listen to Limbaugh, Hannity, et al. and have nightmares about Islamic conquest of the world. They think we can police the world and fight continuous wars and still balance the budget -- all while keeping Social Security and Medicare. That is why they rejected Dr. Paul.
Needless to say, the average Republican is a fool. They are completely unaware of the real situation and are unwilling to even find out. But independent voters, especially young voters, are waking up to the truth. Ron Paul would have appealed to them.