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This is such a canard. He is MP for Islington North, Gary Glitter could get elected as Labour MP there, just as he could get elected as a Tory MP in Witney. Ken Clarke has been an MP since 1970 but that doesn't say anything about his electability as PM.
Either way it's a long time till the next election. The PLP rushed in to this because they thought Boris would be leader and he would call a general election in a few months. It doesn't look like May will do that so the PLP, and Corbyn, have a long time to see how it works out. I think Corbyn, far from being self-serving, actually would step down if he saw in a year or two that he was making no progress.
If Labour MPs want Corbyn to go because he can't win a general election I can't see how they think a split would make that better - having two Labour parties lose rather than one doesn't look like a success. -
Standing in Islington is a bit different to a lot of other old labour strongholds though.
A lot of the traditional labour voters I know don't rate Corbyn. Whether that is because the press/plp have screwed up his chances or because they don't agree with some of his policies is hard to tell. Unfortunately I think he'll never be able to shake that off, it's too late now.
It's not necessarily his fault but he's too polarising to win now.
And there's the rub. Corbyn is unelectable in a general election, yet still he stays, putting his interests ahead of the party's. A split seems inevitable, I just wish they'd get on with it.