OK, I just read his address so thank goodness I missed all the grandstanding.

But based on what I read I don't think he address what the American public wanted to hear. Great ideas in regards to the fight against AIDS, NCLBA (although I do think that it still needs some major work - children should be thought to think critically, not to simply memorize info in order to get a particular test score, but digress), even immigration reform. But the main hot button is the war - which the majority of american (regardless if you Dem/Repub/liberal/conservative) has grown remarkably tired of it. It matters not how much he wants to grow our military forces, if there are no volunteers who are willing to take up the challenge?
I think if the Republicans are going to have even a remote chance in 2008, they are going to have to either (a) some SERIOUS butt kissing to the more moderate voting base (b) more vocally publically distance themselves from Pred. Bush's initiatives with his current Iraq stratefy being one of them or (c) pull a SUPER candidate out of a hat that will overshadow our current presidnent's damage and alienation to current republican party memebers.
Long time groups which at one point was considered a "shoe-in" for Republicans (ex. evangelicals) have grown tired. Not to mention the fact that you now have more candidates of other parties (especially the Democrats) touting themselves as "evangelical friendly" (ex Bob Casey of Penn). Its almost like the Democrats have found this niche and are taking advantage of the opportunity and the Repubs are just basically sitting back and letting it happen. Well I take that back - Sen Brownback has been publically critical of our President so maybe some Repubs are S-L-O-W-L-Y starting to catch on that for a victory in 2008, its going to take more than the old school party line tactics that were used in days gone by.
Just my 2 cents....