I fear that the move toward the center would keep the Republicans calling the shots; we need to abandon some issues and push hard on others in a way that keeps what's left of us together. Perhaps pushing on "negative issues", such as the end of government subsidies to large companes and the oil industry, the protection of choice and gay rights should be emphasized and the entire gun control and other restrictive policies should be dropped.
I honestly think the Democrats emphasize Abortion WAY too much still. That should not be a deal breaker. Gay Rights are trickier although with Gen X, Y and Z replacing the Greatest Generation, Silents and Boomers that will happen anyway (thankfully). Other than that I agree with this. Really the Democrats should emphasize a more anti-pork, fiscally Conservative position.
As pro-business as I am I wouldn't necessarily 'give up' on them although the party should really avoid endorsing actual protectionism.
Also, we could use the SCOTUS ruling from last year to campaign on leaving Affirmative Action up to the states.
You want to risk losing our most reliable base? If we moderate at all on affirmative action, it should be to tout more class based programs.