@oralloy,
Here is what might happen in the unlikely scenario of the Democratic Party being outlawed (though I believe it is impossible as it may be seen unconstitutional and a violation of the First Amendment) :
Former Democrats would create a new party based on a liberal ideology. This new party would win elections, first at a local and state level, then at the federal level. Then when the new party has control of the executive branch and Congress, they could pass a law, outlawing the Republican Party.
Former Republicans create a new party based on a conservative ideology. Then the cycle repeats.
Honestly, this idea of yours has zero chance of being taken seriously, and no politician is going to listen to some self proclaimed lazy genius from a Michigan bunker.