There are only 3 options that the GOP can take:
1. Go over the cliff - this will cost them in the next election cycle as the media and Dems will blame any negative consequences entirely on them.
2. Play the Simpson-Bowles card - this is better than going over the cliff and it is a much better compromise than anything they'll get from Obama right now. I doubt Obama accepts the offer and at least some of the blame gets shared - maybe.
3. Give Obama most of what he wants and simply vote Present. Obama and the Dems will own the economy and any consequences thereafter. Same with the next budget. Wait for Obama and the Senate to propose a budget. Give it a present vote by all Repubs. Let the country have Obama in full force. All the blame - Dems