I tend to agree with your analysis, but I would make the following comments. Amnesty is a populist issue which cuts into both parties. The Republicans were responsible for putting the deciding votes with the people's will. The problem is neither party is populist and particularly the Republicans. If the Republicans would start representing the small donors in the party and publicly and seriously put forth stronger enforcement against ILLEGAL employers then they might be able to broaden the party's currently dismal appeal. I know of NO Republicans in my small circle of acquaintances, who do not want to see more border fence and more illegal employers taken to account. And oddly I know quite a few Democrats that probably the ONLY political things we agree upon are securing the borders and stopping illegal employers.
This issue is not going away. It is the elephant in the room and growing larger every day. No matter how much spin the politicians use to disguise what is happening, it boils down to whom do you believe, the politicians or your own lying eyes? Grassroots organizations are springing up all over the country. They are committed to taking their government back from the political elites of both parties. States like AZ, OK, and GA have passed legislation cracking down on the benefits given to illegals. Local communities like Hazelton, Herndon, Farmers Market, etc. are also taking action.
According to census figures, there are now 38 million foreign born residents of the US with 12 million illegal. Those numbers are probably understated. It has been more than 80 years since the foreign born population of the US has reached such a percentage [over 12% or about one in every eight residents of this country] and in several years it will exceed that number making it the highest in our history. And in terms of raw numbers, there are almost three times the number of immigrants than we had during the Great Wave in 1910. There is going to be a major backlash from the American people and the the Reps better make sure that they are on the right side of the issue. God help us when we have an economic downturn.