Well, whatever O'Toole wants is far beyond his control, at this point. Maybe if he ran a better campaign he could have nipped this problem in the bud, or maybe he could have entirely empowered the crazies, but that's neither here nor there. He lost, he's resigning, and the problem is beyond his fixing now - who knows if his appeal will even reach the ears that it needs to.
This is going to be a Canadian problem as a whole to resolve, and it's a simple solution: if you do not want radicalized politics to take over, do not vote for the radicals to take over your party or Parliament. Say what you will of the other parties, but radicalism and reactionism are largely a Conservative issue, and I imagine the voters will more than kindly respond to the idea of trying to turn things up a notch.