The GOP never found its way to begin with. So long as members of the conservative party continue to believe media blowhards like Rush Limbaugh, Sean Hannity and Glenn Beck the Republican Party will never be a viable political party in America. The GOP isn't losing its way, it has never found its way. The only way it will become relevant is if the GOP has more women and more minorities in leadership positions.
I think both parties are blending together. I don;t notice that much of a difference between them in a lot of issues now. The time has come for a new party to be formed and balance these two out. The two party system isn't as good as it once was.
If you look at the Republican party of the 1950s and 1960s, you will see how far the Republicans have gotten from the great party they once were. They used to promote unions and better wages for workers. They were about hard work back then, but they had a more progressive approach than now.
Yes, the Republican party is losing its way, because it does not agree with the things that conservatives believed even 20 years ago. Regan would be horrified by the things that Boehner agrees to. When the conservative base complains, we are told that we are wrong and out of touch. They will continue to lose elections until they get it.
I do not agree with the notion that the Republican party is losing its way. But I do think that there is currently a lot of problems and issues that need to fixed in the party. I however do not think that they are anything the GOP cannot handle and take care of.