This thread is pretty indicative of how clueless the Republicans are. If they really think nominating George W. Bush III is their "best chance", Obama might as well just go on vacation for Campaign 2012.
George W. Bush's political views are somewhat in line with Republican voters. The ideal candidate you have, which is much more libertarian, has little to no chance. I doubt even a moderate will be able to win. In 2012, Republicans will try as hard as possible to get a conservative candidate nominated.