Having an organization that does libertarian outreach on a national level is useful. However, the LP seems to concern itself more with actually trying to get candidates elected. All their recent attempts to make the LP more 'mainstream' and 'electable' are a reflection of this.
The primary goal of the LP should not be getting candidates who have an (L) next to their name elected. This leads to ditching your principles in the name of getting a higher vote count - exactly what we're seeing today. The problem is that having Libertarian candidates elected is meaningless if they have no principles.
Instead, the goal of the LP should be getting more people convinced of libertarian principles. If this happens, then libertarians getting elected will naturally be one of the consequences.
The question that remains is whether or not the LP is the best organization for this, or if it should be handled by the FSP, the Advocates for Self-Government, etc etc. A "libertarian Party" may in fact be a good way to do this, but there's no doubt in my mind the current Libertarian Party fails utterly.