Hi John,
The IPSEC with GRE tunnel will try A to B to C when A to C's tunnel down.
Let's just assume that you do not use IPSEC to encrypte the GRE tunnel, above situation will be working for sure.
When we encrypted the GRE tunnel, we actually encrypted the traffic from one host to another host (ip address of one serial interface and ip address of another serial interface). This process is trsnparent to all your user data traffic or routing protocol.
So all the OSPF , EIGRP routing mechanism will be all working fine with your 35 routers hub and spoke or fully meshed GRE tunnel with IPSEC networks.
They can dynamically find the best routes if some tunnels down.
Best Regards,