A couple things...
First the old PCs totally disintegrated after the exodus of Mulroney, split into essentially 3 parties (the Bloc, the Reform/Alliance and what was left of the PCs) and had to re-invent themselves a bit. They spent a fair bit of time in opposition, won some minorities while they went through the process, but now they are back in power with a majority. I know there are those who want to rant about right-wing views, blah blah blah, but thats what happened. If the Conservatives can do this, there really is no reason the Liberals can't too, it may just take longer than they are used to.... not that it would be a bad thing in the face of the institutional arrogance that infects the Liberal Party...
Secondly, I am among many who are disillusioned with the partisan gamemanship and bickering that have become a fixture in parliament. Some claim that its the fault of one side or the other, but it has existed since at least Trudeau was in power and the problem hasn't gotten any better and perhaps only worse. The parties don't seem to exist to serve the country as much as themselves, and their bases. Thus, as a result if they are destroyed, I won't be shedding too many tears. I'm not naive enough to believe we can go back to a pre-party form of parliament, as the English had before Confederation, but perhaps the parties can be diminished in power and more independents can be elected to represent their constituents.
Third, I don't buy a need for tax-payer funding of the parties: if people support their policies, they will write them cheques, even in small amounts, and it will add up. I think the fear of corporate ownership of the parties is paranoia, given our laws in limiting contributions. I also believe it would actually behoove the parties to learn about fiscal responsibility by managing their own budgets before we allow them to manage the countries. Maybe they will be a little more careful with the taxpayers' purse, once in office...
I'll add the standard caveats: I was born, raised and lived most of my life in Alberta, so generally speaking a Liberal (especially a federal one) is something I wouldn't pee on if I saw it burning. I also think my prejudices identify part of the problem with them, in that their brand name is extremely polarizing in some parts of the country, so how can they govern it? Its not a problem unique to them (the Conservatives and NDP have it too, to varying degrees) but they suffer the most from it.