I don't see much short-term potential for improvement in Quebec for the Liberals. I found it interesting that in the recent byelection in Repentigny, the Bloc won (no surprise), the Conservative came second, the NDP candidate (!) came third, and the Liberal fourth. My understanding is that the disillusionment with the Liberals runs pretty deep in Quebec right now.
In Dion's favour, he was untouched by scandal, and apparently he also managed somehow to stay above the infighting between Chretien's camp and Martin's camp over the past several years.
Things may change of course, but I repeat what I said earlier somewhere. The Liberals will need almost a miracle to win even a minority government in the next election. The chances of a majority are almost nil. I think they know it, and I think in selecting Dion, they were actually looking two elections down the road.
Whatever happens, I don't think Dion will be given the boot after the next election, unless he proves to be a complete and total failure as a campaigner, which I doubt.