This is where Bachmann comes in. Her ability to channel the base's irrational, swing voter-alienating passions may make her a near-certain November loser, but it also positions her to corral many of the voters Perry is now pursuing. For GOP elites who now have reservations about Perry, this is a very helpful dynamic.
At the very least, it buys them time right now, preventing Perry's campaign from becoming a runaway train while they decide what they really make of him and his general election prospects. And if they do ultimately decide that he'd be a bad November bet, then Bachmann could potentially do them a big favor by winning Iowa, a state where Perry will be expected to do well. If he can't beat Bachmann there, his stature would be reduced, and the next contest probably wouldn't go much better for him: New Hampshire Republicans have long been resistant to overtly religious Southerners. Yes, the race then would head South to Perry's natural turf -- but with Bachmann winning Iowa, she'd almost surely prevent Perry from sweeping through the South, just as he'd eat into her support. The big winner in a scenario like this would be Mitt Romney, who is probably the safest (read: most generic) candidate Republicans could nominate.
Excellent article on the lay of the land, where Bachmann is concerned.
The one way Michele Bachmann could actually help the GOP - War Room - Salon.com