bring the ghost on
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That is one of the most oft-used wrong statements in British politics. That election was in serious jeopardy the moment the SDP came into being, and lost once the Falklands War started; by the time the manifesto was announced it was too late to do any more damage.
Agree that there were a lot of contributing factors to Thatcher's electoral success, probably the biggest being Falklands. However, the "longest suicide note in history" remark does carry some weight in the sense that it reflected how popular opinion had moved away from the post-WW2 leftist/Keynesian progressive politics and towards the free-market, profiteering, services-centric, neo-con philosophy which has been dominant ever since.
Michael Foot himself said that the note was "as much a failure for human decency as the Labour party" (paraphrasing). It was about people rejecting the values which had previously been part of popular opinion as anything else.
Tony Blair gets a lot of stick for how far he pushed the party to the right in order to make it electable again, but you could make a serious argument that anything resembling the Old Labour values was dead in the water post-1980, and those values have shown no signs of coming back around, in my opinion.