One of the important points already has been made upthread: Powell supported Obama ONLY because he was black. This demonstrates how shallow and opportunistic Powell is.
Second, the GOP already has tried to win with a “moderate” candidate named McCain. How’d that work out for you “moderate” Republicans?
My point is simple: The GOP has become disconnected from its base, and from middle class working families. It needs new ideas that appeal to those voters, and that are NOT Democrat-lite. An example with respect to reforming health care here: manhattan-institute.org