Though I do not agree with 100% of everything you have said here, your basic premise is absolutely spot on. And you make many very good --and cutting to the chase-- points on particular topics.
The biggest and final shift came with Bill Clinton in 1992, don't you think? He cracked the code of how to win the Presidency as a "Democrat".... but he sold his soul to the embracing of center right Republican ideas. Or at least that is how I saw it. He was always the big bright dividing line to me, Bill Clinton, where the "Left" finally completely and totally ceased to exist under his leadership.
Sometimes politicians are too Machiavellian in the sense of thinking "Anything to win, baby." So very many Dems contort themselves into "nice" and "moderate" positions they think people want to hear. In order to "win." That makes it all the more an incredible irony that their "nice" and "moderate" selves are gonna have their butts kicked for it in 2022. Then they will be scratching their head wondering "but how could we have lost? we were so NICE."
One of my favorite past politicians (I'm not going to name him, as he happened to have been a Republican, and I don't want to lose my liberal credentials by citing him by name LOL ) once said that his secret to getting elected was just be straight up honest with voters. Don't sugar coat. Don't try and tell them what you think they want to hear. Speak what you really think and believe, speak about reality, tell them straight up what needs to be done -- like it or not -- to solve problems in this country, and how it can be done....and guess what? Voters debated with him...disagreed with him... argued with him....listened to him.....ended up deciding he was a trustworthy leader and voted for him.
What a concept, eh?
*sigh*