What makes Jim Webb so appealing to the white working class? I never perceived him that way, especially given his 2006 campaign. Additionally, what about Mitch Daniels could possibly be socially liberal, or even moderate?
No urban areas will be turning Republican. I'd be far less surprised if they were actually trending more Democratic.
Mitch Daniels doesn't need to be socially liberal to be a successfull candidate. What crushed the GOP in the suburbs (outside of th South) in 2008 and 2006 was that George W Bush and the party seemed incompetent, and too focused on social issues.
Mitch Daniels is obviously a social conservative, but he doesn't let him define him the way it defines Mike Huckabee and Rick Santorum. To me it looks like he is defined by managerial competence, that he knows how to run the executive government in his State. I believe that will make him more competitive in the suburbs than any other Republican candidate as of today.