For Conservatives, "elite" really means "uppity", as in "black running for President".
Palin's constiuency understands that. For low-information voters, the kind who voted for Bush, that label is designed to appeal some of the lower instincts. As does most of McCain's and all of Palin's campaigning.
I've already commented upon their delightful ways of changing the meaning of words. This is just another.
Arf