I don't know where people get the idea that a libertarian would carry Oregon and Washington. Sure, the eastern rural (already Republican) parts of those states would embrace a libertarian, but the cities and counties where all the votes come from in these states are too far left economically.
Doesn't Washington have pretty low tax rates or maybe even none at all, and aren't most of their Democrats pretty centrist? I think a moderate enough Republican could peel off suburbanites there, as Tom suggested.
Sure a moderate Republican could win. I'm pretty sure there's one statewide elected Republican in Washington (SoS?)
But the stipulation of this thread was a libertarian candidate carrying the northwest. Sure there are things they could connect to the state with. But there's policy baggage with being a true libertarian, and if candidates are campaigning on wanting to abolish a host of government agencies, that sends a pretty obvious red flag. They'll keep voting for their left leaning and centrist Dems.
[Edit]: I also disagree with the map posted above that shows Dems making gains the South (LA, AR, KY, WV) if the GOP turns libertarian. (Mississippi = Solid D though
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