No Falklands war doesn't damn Thatcher, compared to Labour, the Conservatives are more electable. With the electoral systen skewed, the SDP would have been lucky to take 70 seats with even a 30-35% share. No Falklands means Thatcher could have waited till 1984 to call the election...the miners would have went on strike, Foot would still be Labour leader. In the die hard Socialism that resulted, I doubt the Labour members in the little mining community of Sedgefield would have chosen plucky lawyer Tony Blair as their candidate... The Conservatives would still have won, but their majority would be small and Thatcher's position would be weak. Come 1986 and the Westland Affair, she would be weakened and with no willing Benjamin Brittan to fall on the sword, I can see Michael Heseltine becoming PM in 1986. Kinnock will probably have became Labour leader in 1984, and come 1988/89- it would been a close call.
Isn't Michael Heseltine the guy who said that the essence of being prime minister is to have big ears?
Nice analysis, btw.