I have long countered that 3rd parties are destructive to Republicans and dilute the power of the people. NY-23 is an example of the antithesis in that locals are sending a clear message that machine politics is wrong for Republicans.
Newt Gingrich has become embroiled in the hopes of retaining a unified Republican showing at the polls, which is laudable, but is also interference in local politics, which is not laudable.
Instapundit has some excellent advice which to me cuts the Gordian knot of this conundrum:
To my mind, it’s more important — that people not divide into permanently warring camps than that anything in particular happen in this election. The nice thing about NY-23 is that it’s an opportunity to send a message at low cost, but the cost won’t be low if it produces long-running enmity. Instead, it should be a spur for people to get involved in politics at the state and local level now, rather than complaining about the nominees later.
A Republican Party filled with activists that work together and ignore the petty politics of "my way is the only true way" will lead us back out of the nightmare that is Washington, DC today.