No. I don't think that the GOP should soften it's positions on social issues. Certainly not on abortion - I actaully think as the younger people come of voting age, anti-abortion platforms will work in favor of the GOP. Against all other social issue trends, the youth are becoming increasingly un-supportive of abortion and especially of abortion on demand. Believe me, NOW and the other pro-abortion groups are keenly aware of this.
As for reaching out and persuading or even identifying with the youth, I really don't have any good ideas on how to do it, nor have I really heard any else with any good ideas. But, my wife and I both spent a considerable amount of time on college campuses last fall campaigning for McCain and acting as advisers to GOP groups on campus. I can promise you, as someone who graduated from college in the early 80s, the environment on campus to today for Republicans is abysmal in comparison.
The liberals have been exceedingly successful at painting the GOP as the party of hate, bigotry and intolerance. That will not be overcome for some time and not without a herculean effort. I just don't see any desire or drive for grass-roots conservatives to engage these younger voters and I'm afraid that could be a mortal mistake.