As a former liberal I must agree with that characterization. The only way I can see that conservatives can turn things around is if enough liberals start waking up that they sway their friends, who in turn sway their friends, etc. I don't know how we can reach critical mass, but if we do the liberals are finished; if we don't, the best we can do is limit the speed of our own slide into the abyss.
I don't know what stimulus would be most effective at turning liberals, but one that I would think would be helpful would be if a conservative were to do a "Criswell"-style prediction routine and ask people to write down his predictions and ask liberals to--as a game--seal them in an envelope. But unlike Criswell, actually make predictions of things which to any rational conservative are entirely predictable. A few years later, he should ask liberals to look in their envelopes and see how he fared.
As a liberal, I found that when liberal politicians' programs failed to work as advertised I always viewed the failures as resulting from unforeseeable circumstances. Would have been a little harder to rationalize if someone had, in fact, foreseen them perfectly.
I'm not sure that we have to turn a whole lot of minds to retake both houses. Yes, for some states like RI and perhaps NY this may be the bluing of the blue (as John Fund called it,) and they won't be going back. But we won razor thin races in the last few elections, so losing razor thin ones this time doesn't necessarily mean that this was a true 'wave' realignment. Enough races could well flip next time for us to get both back, as well as retain the Presidency. Especially if Rudy is leading the ticket. Let's see, in the Senate we lost a rookie legacy child (they rarely perform well long term) in the most Dem state in the country, lost an OH senator after a huge corruption scandal with the gov who refused to resign and so every remaining day pissed off the voters, and apparently lost MO, which is always razor thin, and VA which has been trending towards a GOP/Dem equilibrium. Santorum was a conservative oddity in a Dem state that traditionally flips parties every 8 years at the state level, and Montana was a loss due to corruption. Only RI points toward a permanent shift that probably locks out the GOP.
Am not going to copout and just claim the Perfect Storm as an excuse, but there was indeed an element of that. Control of everything will still be up for grabs in 2 years.