As you may imagine, although I agree with some of his policy positions, I am not at all a fan of Ron Paul (mainly for his isolationist ideas, but also for his rather odd associations). However, I think his relative popularity may be a good sign, as Glenn Reynolds notes:
Paul's doing better than anyone expected. It's abundantly clear that he's not doing it on charisma and rhetorical skill. Which means that libertarian ideas are actually appealing, since Ron Paul isn't. Paul's flaws as a vessel for those ideas prove the ideas' appeal. If they sell with him as the pitchman, they must be really resonating.So, although there is some room for doubt, I think he might have a positive effect on the Republican Party.