"Democrats are in denial. Their party is actually in deep trouble."

Matt Yglesias marshals the facts, mostly about strongly rooted GOP power in state government and in Congress. Also:

Liberals accustomed to chuckling over the ideological rigor of the House GOP caucus won't want to hear this, but one of the foundations of the GOP's broad national success is a reasonable degree of ideological flexibility.

Essentially every state on the map contains overlapping circles of rich people who don't want to pay taxes and business owners who don't want to comply with labor, public health, and environmental regulations. In states like Texas or South Carolina, where this agenda nicely complements a robust social conservatism, the GOP offers that up and wins with it. But in a Maryland or a New Jersey, the party of business manages to throw up candidates who either lack hard-edged socially conservative views or else successfully downplay them as irrelevant in the context of blue-state governance.