Not true. Santorum was our Senator in PA (I am only a recent transplant to GA). There is no doubt he is a Big Government Conservative, but (unlike the fraud from Mass) he is who he says he is.
On a personal level I would prefer Newt, and have donated to his campaign. That being said, Newt has not done well since his win in SC. At some point we need to get behind a single Conservative or Romney will win by default.
As far as the election defeat ... Santorum ran against the son of a Conservative (Pro Life) Democrat Governor. In addition 2006 was a terrible year for any Conservative. Anyone who understands PA politics knows that Santorum lost in 2006 because he was too far right, and his opponent had high (and positive) name recognition.
I live in PA and you are correct. Under the circumstances at the time, Santorum didn’t stand a chance with the well known name running against him.