You have to remember how elections work in this two party system of ourse. Before Giuliani can get to a general election, where his more moderate stance would be good for his politically, he has to get through the primary process.
The primary process is an entirely different matter. In the primaries, it's the party base which matters, not the independents who in some states can't even vote in Democrat of Republican primaries. That is a very important distinction. The base is what determines who wins the primaries, then the winner of that process has to begin campaigning to win the independents and cross-overs. After each party chooses it's nominee, we always see them both race for the middle. The Republican winner who had to lean farther to the right to please the base for the primaries, then has to lean back toward to middle to attract independents and moderates, while still keeping the interest of the base alive. The reverse is true for the Democrats. You watch Hillary Clinton and the as yet other unknown Democract hopefuls move steadily to the left as the primaries approach, and then watch the nominee move back to the middle after the nominations.
Giuliani is very far from the Republican base, which was just made even more conservative by the removal of a bunch of moderate NE Republicans, like Chaffey. He is pro-Choice, pro-Gay marriage, and pro-Gun Control. That won't sit well with the Republican base at primary time. He's already, even before the primary season has begin, at odds with large groups of the Republicans who go to the polls in primaries, ecially the religious right which has a huge say in the primary elections, and the NRA which also makes up a large part of the Republican base.
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