You got one half of the story right (except for the "refusing to talk about Islamic terror" bit, given the number of drone attacks carried out by the US and unprecedented NSA powers, but I digress). Let me tell you the other half:
Fiscal intransigence, over-hyping free markets and free trade, constantly mixing Christianity with politics, preaching about family values, accusing your opponent of being authoritarian and petulant, wanting to stand up to Russia and push a more robust military response in Syria. The chickens came home to roost - not yesterday but during the primaries when the base threw out every one of these long-treasured party positions to embrace a con artist.
Yes, the red team won, but both party ideologies were taken to the woodshed by the message of hyper-nationalist populism delivered by a reality TV clown.