The problem with the current process is that Democrats have to pander to the far left and Republicans have to pander to the far right to win the primaries before turning back hard towards the center for the general election. Currently, the Republicans have to go farther to the right due to the current insurrection occurring there, which significantly lessens their capability to "right the ship" (so to speak) back to the moderate center for the general election. We saw an element of this not too terribly long ago on the Democratic side with the likes of Ralph Nader and Howard Dean on the far left.

The problem is not that the Republicans have to choose between "Christian moral crusaders" and "small government fiscal libertarians." The problem is that the Republican Party acts as a coalition government of sorts for all versions of what would otherwise be conservative parties. In short, the Republicans will always have to represent both, just as the Democrats have, for example, had difficulties balancing ecology and unions. Either they'll find ways to work together, one will come to dominate the other (see fiscal libertarian Republicans in the post-Goldwater era until relatively recently), or we'll see a continuation of this internecine war which will make the party less and less electable as they bloody each other in the primaries and have nothing left for the general elections.

Parties win when they have the largest tents possible because large tents cover more voters. However, this comes at the sacrifice of ideological purity. At this point in time, the Republican Party appears content to maintain this purity, even if it means less popular victories.