This is the best outcome to be hoped for, and not altogether unrealistic in this country. I think the mindless middle tendency of the country would tend to ameliorate the extremes of each, on average, but it still leaves the question of how I would vote. Being atheist, bisexual, and mixed ancestry puts me on the immediate smite list of the Fundies, except that I can easily hide all three, which I generally do for the first two in a lot of circumstances. I'm generally of above average health and intelligence, and have had the good fortune to be raised in relatively stable circumstances, so I wouldn't be too disadvantaged in Libertarian America, except that my wife has had some difficulty with her pregnancies, and her job, which provides our health benefits since I work for a very small company, receives government funding. So the greater immediate measurable loss would probably come from voting Libertarian and losing health coverage that we are likely to need soon. Privately we could still live largely as we do under a theocratically inclined government, unless it gained enough social and political inertia to start invading our lives and forcing more and more personal conformity. So after a term or two of religious conservative, I'd probably have to vote Libertarian periodically, if not just to keep the opposition party strong enough.I'd probably try to vote in Conservatives who were more focused on the public good programs and less hard-line on social issues, and Libertarians who cared deeply about individual rights but were willing to compromise on economic issues. Really, the best possible thing that could come out of this would be a government contested between the relatively sane wings of both parties, with the batshit crazy wings being as marginalized as possible.
If we're extremely lucky, some of the better policies, like decriminalizing many drugs and providing accessible health care for the poor will be implemented during a term of one or other party and become so popular that the opposition will be politically unwilling to remove it for the sake of doctrinal purity. My question is, where will the media be during this and what will there likely take be on each party? Corporate money will favor the Libertarians, while religious censorship could eventually become powerful, but I think it would take the religious party longer to enact really sweeping laws controlling the media than it would take for corporate ownership/bribes to influence coverage.