Many points of discussion here:
The cocoon is the constellation of mutually-reinforcing conservative institutions - think tanks and advocacy groups, talk-radio shows and websites - that can create the same echo-chamber effect that the liberal media has long produced, and that at times makes it difficult for the Right to grapple with reality.
And:
So when I say that a populist conservatism needs elites, what I really mean is that it needs elites who can step outside this cocoon and see national politics more clearly - whether they work for conservative outlets, MSM outlets, or something else entirely. This is not, I repeat not, a matter of listening to Beltway conventional wisdom instead of the practical wisdom of the heartland. It's a matter of recognizing political realities, instead of denying them outright - whether you're in DC, New Hampshire, or Wasilla. The Sarah Palin who ran for statewide office in Alaska appeared to understand this, which is why she seemed like such a promising figure to me months before McCain selected her: As governor, she was conservative and pragmatic, right-of-center and anti-ideological.