Please, read the whole of my post.
The decline of the so called happened precisely after 1994, when the GOP decided to employ the Biblebeltical Strategy Full-Throttle
Cause and effect.
The decline of the Republicans happened after 1994, when Democrats embraced what they always were all along - the Party of State-guided developmental capitalism. Why vote for social reactionaries when the Democrats are promising you technocratic capitalism, if all you want is technocratic capitalism?
And why people all over the world (not only Americans) grew so disenchanted of free market and with such a strong belief upon an enlightened Ivory-Tower elite which magically knows what is better for ourselves much better than we know? Media indoctrination and colleges played a prominent role upon this. It didn't happen overnight. Its a process that takes DECADES. That's why we hardly notice it in the short term.
Except that your entire narrative is false. (It's also, interesting, based on an inverted Marxian analysis of society, with the "ivory-tower elite" in the place of the exploitative
bourgeoisie - I'd guess you know somewhere that what I'm getting at is true.)
The Democrats aren't hostile to capitalism - and capitalism, as you know, is not synonymous with the 'free-market'. They're mere technocrats who want to administer it in a way as to promote stability (they take inequality as threatening to the system, and rightly so).
There's no room whatsoever for genuine class analysis or alternative modes of political economy within the Democratic Party.