Since bluedog democrats are often to the right of more liberal republicans, there is a certain overlap.
But if we want to look at democrats as favoring big government and republicans as favoring a smaller government, we may be getting closer to the traditional differences between parties.
But IMHO, the real reason is that the GOP distrusts any governmental regulation of business, and GWB&co were quite successful at dismantling over a century's worth of regulations. And we saw business basically going wild, letting their own greed get ahead of their own self interests, and it damn near melted down the entire banking system and the world's economy. And we have still only addressed a part of the bail outs that could be still needed unless we demand the bankers pay for their own screw ups.
Basically saying to me, that a balanced approach is needed, we can't get too far left or too far right or there is always hell to pay.
Obama may seem over liberal to some, but we have been drifting too far right for too many years, and must move quite a distance to the left to restore the balance. As it is we have transferred too much of the tax burden to the middle class and the poor resulting in too much wealth transfer to only the very very rich, thereby leaving the lower part of the food chain with too little spending power to sustain the American economy.
Sadly our self inflicted wounds are very deep, and all roads may lead to ruin.