Interesting... could you describe the full details of that?
It comes up in
Rise and Fall of the Third Reich.
As I recall: December 1932, von Schleicher offered Gregor Strasser, number 2 man in the Nazi party and something of a rival to Hitler, the Vice Chancellorship and some other political offices. Strasser and Hitler feuded; the latter accusing the former of treachery, which was denied and responded with accusations of leading the party to ruin. At the time, the NSDAP was going bankrupt and had lost seats in the November Reichstag elections. Strasser and Frick wanted to work with the government; Hitler, Goering, and Goebells opposed it. Gregor ended up writing a letter resigning from the party (can't remember if he delivered it), then absconded to Italy to get away from things for awhile. While he was gone, Hitler went about booting key Strasser allies from the party (or from leadership positions... don't recall the details here). By the time Strasser returned, Schleicher's gambit at splitting the Nazi party had been thwarted; we all know what he ended up doing.
Is my understanding mistaken, or do you think Hindenberg and Papen misjudged their ability to sustain continued use of the emergency decree power?
I think they blinked -- the Nazis, as mentioned, were going broke in the weeks after the November 1932 elections; even if the extremist parties continued to make emergency rule difficult, Hitler literally could not afford to withstand another election. This might, in effect, mean a period of
illegal emergency rule, but of course that would be better than what OTL got.