Well, see, I can see the risks to the party, but I'm not sure it's all that dangerous ideologically. One of the (many) great challenges of the Obama administration, in my mind, is redefining a viable, acceptable opposition party. Empowering John Huntsman does this. So it might be risky for the democratic party, but I think it's overall positive for America, for progressives, basically for everyone except the uberconservative rump.
I would far, far rather see a sensible, culturally literate moderate conservative become the next president of the United States of America than, say, a corrupt corporate whore like Evan Bayh, no matter his ostensible liberal sensibilities. And it would be a strange, happy sort of dream to see a presidential race in America with two at least vaguely acceptable candidates. Make no mistake, I despise the Republican party and would love to see the Obama administration succeed wildly and lead us into a euphoric progressive utopia, but I think realistically it can only be a positive development for the Republican party to get off the crazy binge and back to reality.