I do think Democrats should rebuild the party in the South - we'd have the majority if the South was cut out - but if it means appealing to racism, sexism and homophobia, forget about it. I'd rather have an enduring presidential majority than a tepid House majority.
Luckily immigration trends will turn Florida and North Carolina blue for us, and Texas, Georgia, and Arizona will start trending our way.
The problem is geography for anything besides the senate and presidency.
We're not getting liberal bills without a democratic house at best will get conservative reforms or the status quo. but land votes in the US and the states control districting. Dems live in cities and it makes it hard to split them up for districting the democrats in maryland had a hard time gerrymandering there if I remember right. And unless we have a wave election every election is going to be like swimming upstream.
We need to either counter-gerrymander (requires winning back state legislatures and is still gonna make it hard to win) or fight for something like multi-member districts (which has a law against it but which is consitutional).
And rebuilding in the south doesn't mean appealing to racism or homophobia. That's not what wins most elections (its more about solidifying the base) in the areas the dems would try to win. Its independents who see people like Nancy Pelosi and run in the opposite direction (and who don't take most of the religious conservatism and homophobia for anything other than pandering), we need people like bill clinton or a schweitzer that can really articulate what liberalism means to rural voters (populists)
You're not going to win on ethnic issues or womens issues in the south like you can in other areas, you need to present them with a vision that "for the little guy." obama did great in ohio with a similar message. and look to clinton's wins in lousiana and tennesse, at the height of the southern strategy.