The Republicans, for their part have been famously inept in explaining their positions, while taking pains to abandon conservative policies, especially on domestic economic and social issues. Part of this shift is due to the domination of the Republican leadership by Eastern elites as well as a generational preference for more libertarian positions on issues like drug policy and gay rights.
Yet I maintain that the more potent force for the Republicans' leftward drift has been a vacuum of conservative leadership in the face of daily assaults from a culture dominated by liberals: specifically in the schools, government institutions, and the news media. Our electorate has been pulled to the Left more than it has been pushed, with conservatives unable to find articulate voices within their putative party to effectively push back.
I don't believe so. The point I'm trying to make, and perhaps I made it poorly, is that despite how people identify them selves in public polling, either conservative or liberal, there are a number of very specific issues that the clear majority of American's believe that the GOP is on the wrong side.
These issues have changed over time. As an example, while abortion is still contentious, the limitations that Bush placed on abortions the last eight years have been generally very well received. Gun ownership rights is another, despite what Obama may try to do, he clearly campaigned on an agnostic gun platform, if not pro-gun platform - the democrats learned from their drubbing in 2000 and at least changed their public face on the issue. Essentially, the Dems disarmed the GOP on two critical issues. We should learn from their success. To your point about leadership, I would agree that we have lacked a dynamic, articulate, charismatic and influential leader. Maybe such a candidate could address at least one or two of policy positions in a way that doesn't alienate a majority of the electorate.
The environment is a great example. Conventional wisdom would indicate that one has to be a support of "global warming" in order to be pro-environment. I see by myself as pro-environment, but think Global Warming is a complete fraud and hoax. The problem is, when Repub candidates display environmentally sympathetic positions, they seem to get the RINO label almost immediately from the orthodox conservative base. That's a problem.
Ultimately, if GOP candidates can't reach out to people who voted for Obama without getting lampooned (as seen on this very thread) as FAGS, RINOs, Idiots etc., then the GOP will get squashed again in 2010, and probably 2012. Winning elections is about having more votes than the other guy. If we don't take some of those votes away from Obama, then we're sunk.