The DNC will not die. Just look at their M.O. today. It's not about what they stand for but who they stand against (GWB). That hatred unites their diverse liberal special interest groups more than their differences in ideology divides them.
Basically, its a coalition of haters and hatred does wonders for fund-raising. The money will get thru.
The electoral problem for the Democrats is that the extreme positions held by nearly all of these groups are shared by only a minority of the American public. This is a recipe for re-McGovernizing the Democratic Party after its triangulating Clinton days. To which I say, bring it on.