Many conservatives have insisted that the Democrats' wins in the 2006 midterm elections, as well as their recent pickups in some 2007 races, were mere blips. They wish.
Where has this occured? There have been three special elections for Congress this year, one in Virginia which was supposed to be safe GOP, one in Ohio in a strong GOP district but was thought by some to be competitive, and one in Massachusetts which was supposed to be safe Dem. The election that was supposed to be safe Dem turned out closer than expected, the one that was thought by some to be competitive turned out no different than 2004, and the one which was supposed to be safe GOP was strong GOP as expected.
Democrats made gains in the Virginia legislature, but Republicans made gains in the Louisiana legislature and the New Jersey legislature. They also defeated a stem cell research proposal in New Jersey and had strong results in some Washington state ballot proposals. The two parties also traded governorships in Louisiana and Kentucky, with candidates performing about as well as expected.
In short, politics have settled into a stalemate, and, as expected in politics the dynamics have fundamentally shifted again into something that is difficult to predict. As in almost every other two-year cycle, things change each year.