You've probably already read this one, but Dan Arnold's plea for a LPoC/CPoC merger is probably the best and funniest thing written on the topic this week:
Believe me, I too see how bleak the future looks for the Liberals. After all, we have been out of power for four years, while Harper sits with a towering 34% in the polls. I cannot imagine a more hopeless situation.
My own opinion, similar to Dan's, is here. And another reason it ain't gonna happen (I mean a merger of Canadian progressive parties)--at least not before the next election--is: you can't go dancing without a partner, and I have not heard a single NDP blogger/politician in favour of a merger. And why should they be? How could the NDP faction within a Liberal-New Democrat coalition be anything but the juniorist of Jr. partners. Look what's happened to the old Progressive Conservatives within the new CPoC. Poof! Gone without a trace...except for a few brave souls up in the Senate!
So let's put aside the unseemly panic, shall we?
Update: X Sask. NDP Preem Roy Romanow is down with a coalition. Missed that previously. And a fairly authoritative figure too, in my book.