Good observations all; my point in posing what I meant to be a civil question on what I see as the failure of the Libertarians is this: at the end of the day you've got to win elections.
After 40 years of work where are they? No one but Ron Paul (who ran as a Republican) in the House, no one in the Senate, no Governors, no State Senators, and a handful of State House Level Representatives and a few civic representatives...after 40 years. The Tea Party Movement elected more Republicans to the Congress in a fraction of the time that the Libertarians have been around. The Republicans started a grass-roots party in a school-house in Wisconsin in 1854 and got a President elected and had control of the Congress in 6 years (before the Troubles started...but that's another topic). The nation was different then but the American system wasn't.
I am much as small federal government, turn most things back to your state and local levels (social issues, education...etc...etc..etc...) enact a consumption tax, allow a free market to flourish and drive prices of goods and services as anyone out there. The only thing I ask from my federal government is to provide me with interstate commerce (I should be protected from California not accepting my BCBS in case of injury whilst traveling and a central currency), a strong national defense, fraud and property rights protection. Not much else. They don't nor should they need that much power. Things like education, law enforcement, and social issues should be established and funded at lower levels of government. I know that a lot of Libertarians want the same thing as I, but as you said. They have to win elections and they don't. For the reasons I have stated above, I don't believe they will. Too much infighting and not enough grass roots movement.
Which is why I always tend to vote republican. They may not be exactly what I am for, and no politician ever will, but they are close enough to what I represent to want them in office. I understand that I will never get to have it exactly how I want it. I am though, reasonable enough to get my head out of the sand and understand that I would rather have 70% of what I want than 10%. Republicans are not Libertarians, but do have some Libertarian tendencies, so I will take what I can get and hope to change what I want by petitioning my politicians through letters/email to be open minded about my point of views. To me that is how the process work.