I'd be careful Mongoose, Nuclear1 started doing that sort of rant and now he's a liberal.
Don't worry, I haven't become quite that disillusioned. At least not yet.

I do agree with your main assertion, though. No matter what lip service they may pay to "small government," the modern-day Republican party has practiced anything but over the past several years, and anyone who thinks otherwise really is self-delusional. If people would simply recognize a spade for a spade, and see that the two main parties are for the most part moving in the same general direction (albeit along different paths), we might actually have some sort of viable third-party as an alternative. Given what I've seen, though, I don't hold out any hope for spades to be called spades anytime soon.
As for the religious association with the Republican Party, it is a rather odd mixing of seemingly-contradictory factions at face value, though some differing aspects of the modern Democratic Party are perhaps not much less strange. It'd take someone far more familiar with American political history than I to explain how that sort of intermingling began to establish itself. I kind of wonder, though, if it isn't just an extension of the differing issues and bents that most of us amalgamate into our personal political views. I have a generally traditionally-conservative economic outlook, and there are a few small instances where I'd probably go so far as to say I'm somewhat libertarian, but there are other areas, particularly environmental issues, where I'd probably fall under the modern description of "liberal." As far as the common religious-associated issues go, there's one that I'm completely unwilling to compromise on, several that I'm far more open-minded about, and several more in which I'm in flat-out disagreement with the general vocal majority out there. Amalgamate all of that together, and you get me. I don't think I can be pigeon-holed into one particular narrow belief field any more than the rest of you, and maybe that's also the case for the large-scale institutions that our two major parties have become.