Why are Democrats losing elections? For a simple reason, Republicans are marketing wonder kids. Who else in the world would dare to advertise its faults and to turn them into own advantage?
For example, the fact that George W. Bush used to drink heavily till his late thirties is now the advantage. Wouldn't you like for the President somebody you could have a beer with? Would you expect that Democrats exploit Clinton's sex scandals to target white males (Democrats are significantly short in political support of white males) by phrase: "Wouldn't you like for president somebody you would feel comfortable to chase girls with? Democrats have never been gay party like our competition and its journalists in the White House!"
Democrats are losing morality battle too. Clinton and Gore admitted the use of drugs during their youth and they are now considered morally challenged. Bush failed to announce his youthful sins and he is now a standard for morality. Party that is not capable of materializing such advantage can not expect to win the White House.
Democrats failed to underline that Bush-Cheney ticket who speaks very patriotically failed to act in such a way when they had opportunity during Vietnam War. When Vice-president Cheney specifically asked why he didn't enlist in the US Army in 60's answered very directly: "I had other priorities" If democratic priority was to defend Kerry against Swift Boats smears instead of insisting that Vice-President Cheney always had more important priorities that defending his own country, then Democrats don't deserve to control the White House.
Democrats are losing elections because they are lacking determination too. Republicans are willing to die fighting for their cause. Republicans would blow up abortion clinic or target abortion doctors if necessary to promote their cause or go to Iraq and pacify Falluja or increase terror alert in homeland in order change news cycle and to win elections, as well as smear war hero or war amputee, regardless if they are sitting US Senator or not. Democrats might organize round table if they don`t like something.
Democrats are wavering when criticized by Republicans. Remember Clinton standing fairly isolated in spite of incredible performance as president. Gore wouldn't even have brought Clinton on the same stage to campaign for Gore. Republicans adhered to president Bush in spite of his catastrophic performances. Public can recognize devotion and determination and public appreciate it even when leader is on completely on a wrong track as it is case with President Bush.
Democrats have to elevate their game to new, higher level. Their current intensity is not enough any longer because Republicans increased their intensity too.
Imagine if Democratic party were a car factory. Should they continue with the car production if they can't sell them? They either have to improve their product or stop producing it.