Reagan came within a whisker of winning the GOP nomination in a hard fought and draining race. He went on to win the nomination and the presidency in 1980. And BTW, the media painted him as a loony wingnut and a dunce too.
She is tough and a fighter. In 2012 she will of had 1 and a 1/2 terms as Governor, a total of 20 years Electoral Experience as well as experience in running a business (as well as being a sports caster like a certain other Governor). She will of had more experience in public office then Ronald Reagan and George W. Bush combined. As well, she will have experience running on a national ticket and can learn from her experiences in the race. She can draw out huge crowds and rake in dough. She is the next Reagan.
Having said that, it's still a very personal choice. Given all the vitriol from the MSM, and after 4 years of Obama/Biden, I'm not convinced this will be the choice she'll make. In fact, my sense is that this nation may never see another conservative at the helm again. The Left will have co-opted 2/3 of the electorate, muzzled conservatives and any other opposition, and turned our constitution into something we don't recognize.
CORRECTION: In 2012 she will have had 1/2 term as Governor and 1 term as VP.