The democrats aren't "retreating from reality" -- they're gravitating away from whites.
For all practical purposes, the democratic party has transformed itself into the "non-white" party. Perhaps even the anti-white party (even though a considerable number of whites are still "democrats by default", or by "derangement").
The Republican party (through Trump's themes) won this year because it is increasingly perceived to be "the white folks' party", even though it may not wish to be seen that way. But that's what's happening, and if the Pubbies are savvy, they'll let it continue to happen up into 2018.
This is the same kind of ethno-shifting that has been occurring in the deep South for several decades now. Look at how whites vote in those states -- it's almost "as a solid block" for the Republicans. The democrats get a small percentage of white votes, and just about ALL of the black vote. Whites in the South understand that if they don't vote for the Republicans, they stand a very good chance of being governed by a party (the democrats) that takes its cues from non-white interests.
I have no problems with this.
Let the democrats continue to move in this direction -- it will serve only to further remove them from the "traditional American" realm.