Ron Paul doing "well" won't do anything to bring the GOP back from the grasp of the religious nutjobs. Here's how I see it going down, assuming Ron Paul doesn't get the nomination (which I don't expect to happen, regardless of how happy it'd make me): the GOP nominee (Gingrich or Romney) loses to Obama. The "base" of the party will blame the loss on the nominee "not being conservative enough." 2016 will have the GOP even farther off the deep end (though it's hard to imagine that being possible).
Of course, I could be wrong. Approval for the "tea party" movement seems to be dwindling a bit, even among registered Republicans. Maybe a loss to Obama will restore some sanity to the party.