I'm a modern liberal (generally Rawlsian), which is slightly to the left of what I know of the US libertarian party, so I'm against large government and social programs in general. I'm also in England, so I'm used to being looked at like I'm crazy for ever suggesting there's a case for reducing the size of the NHS and pretty much completely unrepresented by the political establishment here. From that background I think there's a few things to consider:
1) The fact that the major players supporting this have reaffirmed the use of the word "Teabagging" in the title is something I'd expect from 4chan, not the political elite. It reduces the impact it could have had. It's also clear that several high level members/supporters of the GOP have had a large role in organising this... which only adds to the idea being bandied around that as a movement mainstream Republicanism is out of touch.
2) In conjunction with the above, much of the protest was organised and masterminded by the "old boys" of Republican politics using modern methods. A couple of websites have already broken this down, but it's clear the "sudden grassroots support" was a combination of contrieved and manufactured, although of course, some people did attend outside of that.
3) Yet again in conjunction with above, there is no real popular support for reducing government size. There is while this story is in the news, but that's because smaller government has been a right wing catchphrase used by talking heads for the last decade without actually doing anything to support it. The Libertarian Party has horrible election numbers and Ron Paul, the biggest chance to show a real will to reduce government size only ever drew above 10% in primary votes when the cause was already lost. Both major candidates in the election supported the bailout, and both have had the liberal/socialist tag thrown at them multiple times.
I'd debate whether the government offering services such as education is right or wrong, but there's really an issue for another thread.