Here's the historical precedent.
In Canada, the Progressive Conservative party was so corrupt and did so much damage to the economy and the world's view of Canada that voters rejected them so badly that they lost official Party standing - relegating them to the same status as the Communist party of Canada.
The problem was that the Conservative party was a cult of personality - first the swarmy Brian Mulroney, buddy of Raygun, then the idiotic Joe Clark. Had the Conservatives run on policy instead of personality - things might have been different.
Eventually, the Conservative party schismed. The
Reform party under Preston Manning failed miserably (mostly because he was a shrill right-wing idiot) as did the Alliance party under Stockwell Day (mostly because he was a shrill right-wing idiot). The current
Conservative Party (no relation to the other Conservative party (yes, I know this doesn't make any sense, little in Canadian politics does)) under Stephen Harper will probably fare little better (mostly because he's a shrill right-wing idiot).
Dubya is going to drag the Republican party through the mud so bad that the effects will be felt for years to come. This is going to be far worse than Nixon.
I believe Republicans are beginning to realize that they have no choice - they must throw Dubya to the wolves and attempt to salvage the party so it has some sort of chance in 2008. They may have to purge itself on all vestiges of the BFEE in order to succeed.