The single best description of the current turmoil comes from the ABC. Chris Uhlmann comes up with the line;
There is an Australian inversion of Catch-22: if you want to lead the Liberal Party now you must be insane and shouldn't be allowed to.
His analysis is good, especially the problem for Joe Hockey. Joe needs to resist the temptation to run - the party room needs to know their choice is Malcolm or Tony. If Tony wins the moderates can bask in the knowledge that the coming electoral defeat will kill off the only credible conservatie leader for good.
But it does show what we've always known. As both Malcolm and Tony want to lead the Liberal party they are both insane!