That would be delicious for Democrats. Steele has been trying to broaden the appeal of the party by taking on (but then retreating from) Rush Limbaugh, and making statements on abortion and gay rights that don't exactly comport with Republican orthodoxy.
If he is removed precipitously, it will only reinforce the party's image as a small, exclusive club for white people.
We think cooler heads (to the extent they still exist in the GOP) will prevail. Recall the early days of Howard Dean's stewardship of the Democrats--party activists and bloggers were calling for his head. He persevered and ultimately helped lead Democrats to a stunning comeback.
Of course, Dean and the Democrats were helped immensely by Republican overreaching--a lesson they should pay heed to now. (Hint, hint: earmarks!!).
But back to Steele. The GOP desperately needs to broaden its base--to stop being the little tent party. But there are a lot of core Republicans who don't see it that way, especially in the righteous wing. They'd just a soon fight an insurgency against the Democrats than give ground on ideological issues.
We'll see how it plays out. Steele probably has been too vocal and too visible in his new position, rather than working on a plan, or a blueprint, to bring GOP success to coming elections (Howard Dean did have a plan, and it largely worked). Removing Steele, however, would be a huge blow to the GOP's image.