That is only true if you assume that the administration is the cauuse behind the said erosion. If you assume, as I do, that politics is merely a shadow of economy and society, you would conclude the administration merely respond to the shifts in society at large, and the progressive policy (meaning: erosion of welfare state) is being eroded by growing conservatism of the population.
The so-called middle class has always been moderately cocnservative and opposed to collective social security. The factor that was the main force behind welfare state policies was mobilization of the working class. With deindustrialization, growth of the college educated labor force that does not see itself as working class and tends to be fairly conservative, especially on economic issues, social fragmentation, and the absence of any major international conflict came demobilization of the working class, and consequently - dismantling of the welfare state.
That trend is going to continue, and the democrats see the writing on the wall. They go where the voters sentiments are, and these turned to the right and keep turning. Any party wishing to stay in business will inevitably follow the suit. The only thing capable of reversing that trend is not electing this or that politician, but fundamental shifts in society e.g. something comparable to the great depression. Since such shits are not in sight - the drift to the right, and the DLC policies following that drift are likely to continue.
wojtek