And where is Mitt Romney now??
Honestly I think he was the most electable candidate the GOP had last election. But all the bigots in that party won't support a Mormon so he won't make it.
I think Mitt was more damaged at least as much, if not more, by the fact that he was Governor of a state that legalized gay marriage than he was by being a Mormon. While there are far-right fundamentalists who believe that Mormonism is a cult, I think some are feeling the Mormon church is being unfairly attacked for its support of Prop 8... creating a sort of brothers in arms feeling.
At this point, enter Jon Huntsman to the 2012 quest for the ballot. Huntsman has worked with Reagan, Bush Sr., Dubya, and has accepted Obama's nomination of him as Ambassador to China. He's conservative on the wedge issues - abortion, gun control, gay marriage (while supporting civil unions), but is less conservative on environmental issues and healthcare. He's no Al Gore, but I think he's the best option for the Republican party to appeal to moderates without completely alienating the extreme right wing of the party.
As for Palin, I think she is going to everything she can to keep herself in the public spotlight as a Hockey Mom who is active in issues she cares about. I also think she will seek the nomination because she was so close to the White House she could taste it and I don't think she has ever acknowledged that she ever lost any votes for the Republican party. I don't think she will get on the ticket, but you never can tell.