The argument for reforming the Republican Party is the same as saying that the Founding Fathers (and Mothers) were wrong in their actions to form a new country because they should have tried harder to reform the British Government. I think that no one would agree that they showed a "belly up" attitude to just "running away" from the British Empire.
They understood two key things, Entrenchment and Power. Those who have power will always do whatever is in their power to keep it. The republican establishment that controls the GOP will never give up their control of it, they would rather kill it than see it returned to their rightful owners.
Also, 1/3rd of the actively voting public identifies themselves as GOP. A large chunk of those voters vote GOP for the same reason they may go to Church every sunday (which is not a bad thing), that's just the way it is. They vote republican because they just do, they always have, everyone they know and are related to has, and it is an immutable force of reality against which no assault by reason or logic or heart can ever change. Those are the entrenched who will never change. There are the same number, roughly, maybe a bit more, on the Democratic side as well.
The rest of the voters are feeling around in the dark. We liberty minded folk have gotten their attention, they have perked their heads up in the dark, stopped grasping for a few seconds, and are hearing us call out from a distance "freedom!" But the "bright lights" of the two halves of the Federalist party still shine like close suns. To these lost, changeable folks, we do not appear to be serious yet. We will have to mimic the structure of a serious, united party, without the inherent ideological corruption, before we will ever be able to guide these lost and misinformed Americans back to shore again.