Demographic shifts are important, but it doesn't change the fact that the Dems field lousy candidates. If this were not the case, Rudy couldn't have won in NYC; Pataki couldn't have won in NY State; and Schwarzenegger...you get the idea.
Extremely good point, the GOP doesn't groom up coming candidates in a lot of states across the nation. Look at Illinois, where the young GOP is defunct. What's worse is they abandon entire swaths of population centers, thereby not offering any alternative to the voters. Indiana is right behind Illinoi, except for Mitch Daniels, there are no other up and coming GOP candidates.
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Add Jeb Bush in Florida and Bill Owen in Colorado, both conservative Republicans in states with a lot of liberals and immigrants and illegals.