There is a reason why Obama is governing to the right of where he campaigned, Dragon and that is because he's becoming more and more desperate to fix the economy and has reluctantly come to the conclusion that the progressive policies we got from him, Nancy Pelosi and Harry Reid for the first two years of his administration didn't work.
That would make even remotely plausible sense only if we had actually gotten those progressive policies in the first two years of his administration,
and we did not.
You're just not understanding something here. What you are calling progressive policies AREN'T progressive policies; they are moderate, watered-down, and really quite conservative policies. The Affordable Care Act is NOT a progressive reform; a single-payer system would be a progressive reform, or at least a public option. The stimulus bill we got was NOT a progressive reform; something about five times that size that incorporated serious changes to the way we spread the tax burden around, complete reversal of government policy on labor-law enforcement, and public-works programs like those from the 1930s would have been.
Obama's progressive policies have not failed, because Obama has not implemented any progressive policies. And THAT is what has lost him the support of so many of his supporters, not his "failure." Given that he has not attempted in any serious way the kinds of policies that he promised and that might have worked, failure was a foregone conclusion, and we all know that.
You say the Millenniums are turning FURTHER against the Republicans? I'm sorry but I don't see any evidence of that at all. I see many of them withdrawing from politics completely while they reassess what it is that they've been led to believe their entire lives. The youth vote turnout in the 2012 election is going to be WAY off from what it was when Obama won in 2008.
First, they are not reassessing what they've been led to believe their whole lives; what they are reassessing is their trust in the Democratic Party to put those beliefs into action. Second, while you may (but may not) be right about voter turnout in 2012, if that happens it won't signify a turn away from politics but rather a shift from electoral politics into direct action such as we are just beginning to see now. What is demanded is something that neither party is offering because both parties are in the pockets of big business.
In any case, there is just about zero chance that anyone who voted for Obama in 2008 is going to vote Republican.