@georgeob1,
Where is your evidence that Reagan "resonated with the public" any more than Obama does?
I think that conservatives grossly overestimate the amount that the public supports conservative ideas (perhaps the same thing can be said about liberals, although polls... uh well, let's not argue about this right now.).
Political battles are fought in the middle-- and what wins is, more often then not, not the idealogical dogma; but issues of leadership and integrity. It is extremely clear that Americans want leaders who can present solutions, address issues common Americans care about and clearly explain their positions.
The Democrats said they were going to reform Health Care. Americans voted them into power understanding that they were going to reform Health Care. And, they have spent the past 9 months working to reform Health Care.
One party kowtowing to the other party isn't a way to win elections. (And, I suspect the conservatives and Republicans who are offering their "helpful" advice to the Democratic party understand this full well.)