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The Republicans are just giving the people what they want - they want their religious bigotry stroked, their fears and hatreds reflected by their leaders, their legitimate feelings of being powerless mollified by someone who will lie to them and tell them they are strong.
In any rational nation McCain would be dismissed as a corrupt, failed and doddering has-been politician while Palin would be working as a clerk at the Shop-N-Save in Wasilla. That this isn't the case shows what a fantasy land many Americans live in.
To paraphrase Orwell, everyone believes whatever they want to believe in until the truth comes crashing down around them. He said this usually occurs on a battlefield, but with any luck ours will come on Wall Street and not in crazy Palin's war against the heathens.