Titties withstanding, I think they need big changes. One of the things that Desp said, that they've simply gotten too far off kilter for the positions that they're adopting to make a lot of sense, is something I feel is core to the whole issue. They need to find a way to come back to the center a bit, for a myriad of reasons. If I were in their leadership, I'd be considering concessions on some key social issues (I honestly do not think as much of their party as they seem to believe would take offense to more liberal stances on some of these). Gay marriage and women's rights (abortion, abuse laws, etc etc) are two that would drastically improve their social image without changing the actual way our government functions (in terms of fiscal or military matters, anyway), so they would be high on my list. Immigration and social reform too, but changes on those stances would have more sweeping effects to the country and the government, so I find it less likely they would be considered.
These are the kinds of issues that are becoming increasingly self destructive for them. Every generation is growing up more homogenized and broadly socialized (I am kind of interested to see what kids today- like toddler age- are going to be like when they start hitting adulthood. Way less racist than any generation before? I dunno, it could happen). Taking negative, divisive stances on things like race and sexuality and gender is going to (quite frankly) disgust too many of that more liberal younger crowd for a party like they have been to survive. We seem to have already hit that breaking point, with the way things have been going in the last decade or so, and it's a trend I don't see reversing itself any time soon.
But then, obviously, I am not a Republican. And I guess I could be calling the social trends wrong. I am kind of interested to see what's going to happen next, which is better than anything I could say about politics in a long time.