Because like most American libertarians, he took some legitimate issues in American society (privacy concerns, foreign policy etc), and twisted it on its head. Instead of arguing for a different, but balanced approach, they went full retard [i]in the other direction. [/i] That, and his fringe policies/beliefs are exceptionally retarded.
It's amazing how such a great opportunity for libertarians in the last ten years was squandered on terrible economic policy and some rather extremist viewpoints (e.g. his stance on evolution)
I think Ron Paul may be viewed as the vanguard of what the GOP morphs into. Paul never ran thinking he was going to win the Republican primaries and go on to win the general. He ran for president because it gave him a platform to voice his views. He's a modern Barry Goldwater.