Actually Bowser
They certainly did have better people available. Their problem though was finding ones that wanted to attach themselves to what they perceived as a likely doomed campaign. History hasn't been good to VP candidates of losing Presidential bids.
I have the feeling the Palin pick was instead a shot in the dark by the behind the scenes neo-con elites figuring something unexpected could happen and somehow McCain would squeak through the election, his health would fail, and they'd have their puppet. McCain had to play along because his campaign contributions were running far behind Obama's and he needed the RNC cash to have any hope.
I'm sure they're still holding out that hope.
Art