They are not afraid of liberty. They are afraid of Ron Paul, yes.
Ron Paul has exhibited poor long-term judgment, for the purpose of running for President, by pandering to racists and advocating a few dangerously unrealistic policies. Is this what people worry about? In some cases, yes.
Paul also might be racist himself, even if he denies it. He does not show direct evidence of being anti-Semitic, though he may be anti-Israel (but why does Israel deserve automatic support from politicians?).
I wish we had a better candidate who doesn't take influence money. Until I see such a person, I'll continue to support Paul and throw a protest vote in his favor if I get the chance. I don't expect him to win, but if he did win, the negative consequences of his racism would be minor compared to the consequences resulting from the corrupting influence of special interests on an alternative President.
He advocates some policies that sound radical or outlandish when you first hear them. The problem is that too many people don't bother to think further about the reasoning behind his ideas. These ideas become more plausible as you think longer and harder about them, with some important exceptions.
I understand some people's fear that he's dangerous, because in a few ways he truly is. But I don't worry much about those ideas of Ron Paul that are genuinely dangerous. He would require the cooperation of Congress to implement most of those ideas. As President, he would not write laws; Congress does that. He would get to choose nominees for his Cabinet and the Supreme Court, but the Senate must approve them. His area of free reign would be mainly with executive orders. He will use his executive orders and threat of veto power to make the government smaller and closer to his preferences, but he won't have enough power to single-handedly put his policy ideas into effect.
I assume the media aren't conspiring to dismiss Ron Paul; maybe the media decision makers just assume his views are too radical and that his lack of wealthy supporters means he has no chance.