The long term prospects of the GOP in New Jersey aren't great, but Obama's margins here were almost entirely attributable to Sandy.
I have to say, in the short term they seem OK. The 2010 redistricting locked in a 6-6 split bar a massive landslide for either party/scandal, which is pretty good for the GOP in such a D state; Christie seems set to be reelected in 2013 and if he is nominated for President in 2016 would definitely be competitive in the state.
The state's politics actually remind me of Illinois' quite a bit.