"best thing that could happen to Conservatives..."
They're not hoping for a new party to represent the right. They're hoping political opposition takes the hint and just disappears (with a little regulatory encouragement if necessary) leaving the American Left as the sole active political force in this country. Now that I think about it, that's pretty much S.O.P. anywhere the Left has gotten enough power to make it stick.
You seen Carville's new book yet? "Rule?"
A permanent majority is only a problem for Democrats when it's not them.
...I'm counting on the eventual reconstitution of a more principled Conservative side. When Republicans were diddling themselves to rapture over the thought of a "permanent Republican majority", I denounced the idea as profoundly unAmerican, and compared it to history's dreary record of other one-party states. American won't survive one-Party rule, whether by Republicans or Democrats. Our system is a catamaran, designed to be stable with both pontoons in the water. Remove one, for too long, and we'll capsize.
Source.
I have no idea what you visualize when you talk about a "more principled Conservative side." Actual solid conservative principles give liberals screaming fits. Nobody gets more crap thrown at them from the Left than a Republican who actually advocates such principles.
I suspect you're imagining a party of "moderates," i.e. Democrats wearing a different-colored shirt.