Where I live, it certainly is showing awesome progress. Republican Party leaders in NH tend to love liberty Republicans. For example, during one of the special elections for state Rep. last year, the only Republican that ran in the GOP Primary was a person that moved to NH because of the Free State Project. The GOP supported her with use of their names and information, volunteer day events and so on. In another state Rep. special election this year, the only Republican that ran for a person that moved here because of the FSP. I think the Republican mayor of the largest city in NH endorsed the chair of the city's Ron Paul campaign for his reelection as a state Rep.
Of course, the Republican Liberty Caucus cause here supports Ron Paul folks and FSPers with money and endorsements, as does the New Hampshire Liberty Alliance. The New Hampshire Republican Volunteer Coalition has also supported free staters with volunteers. Also, one of the co-chairs of the Republican House Alliance, a Republican House caucus group that was chaired by the current Speak of the House 2 years ago, is a state Rep. that moved here because of the FSP. A state Rep. that endorsed Ron Paul is chair of a House committees A different state Rep. that is a liberty Republican is chair of a House committee. 2 additional Reps. that endorsed Ron Paul are House committee vice chairs. In total, 30 state Reps. endorsed Ron Paul, even though there are around 90 libertarian state Reps.
I could go on and on but at least in NH, the strategy is working amazingly. In all fairness, there are a few elected liberty Democrats. There have also been some close races were liberty Democrats barely lost. However, some of the Democratic Party leadership considers liberty supporters, free staters and tea party activists to be extremist and it seems like every few days some Democrat issues a report about that.