What kind of panic is Romney in?

One has to wonder how strongly Romney feels he needs to pander to the rabid GOP core. Paul Ryan having more power  (though arguably as VP he might have less) is a frightening prospect for the country.  I would also think it's a frightening prospect for the Romney campaign. Up till last night the prevailing wisdom seemed to be that Romney would pick one of the "safer" VP candidates, but suddenly in the middle of the night the rumor mill said that it was going to be Ryan.

Imagine the effect a Romney/Ryan presidency could have on the country.  They'd fix the budget deficit alright, but would in the process probably destroy the faltering economy. This is not a time for austerity while people are without jobs (and the particularly dire job market in Wisconsin is a great testimony to how badly drastic governmental cuts are working).  The failed policies of taking money from the poor and middle class, and giving it to the rich, would only be exacerbated by putting Paul Ryan in as Vice President. It's very hard for me to understand, in particular, how this ticket can appeal to anyone of Medicare/Social Security age, or who aspires to being that old some day.

Is pitching more red meat to the GOP core really more important to Romney than trying to win?