Election 2010 does not feel to me like a Republican victory so much as a fundamentalist coup that threatens to split the Republicans. Democrats should use their slap in the face as a wake-up call, stop chasing the neo-cons, and send the voters a clear message. They won't of course; too many have been on bent knees for too long, ever since 9/11.
The message of the election is that by cozying up to your opponents you simply succeed in making a fool of yourself. Progressives should take advantage of the tumult to form an organized faction and concentrate on offering a candidate in every Congressional district in two years. Give the voters a clear choice.
In that regard, perhaps of all the many issues one could select as the place to make a stand is the Bush tax cuts for the rich. The idea of cutting taxes for the rich during a recession with 17 million unemployed is so astonishingly self-serving that any leader worth his salt could hardly fail to ride it to victory. All the progressives need is a leader and the willingness to organize openly to get members elected, just as the Tea Party has done.