What Happened to the Old Democrats? Liberals?

I missed this article by Camille Paglia in Salon.com while I was off traveling. I ran across this just today and thought it had to be posted, at least this portion. Of course, I don't really agree with her on many, many of her opinions, but she is dead on course on this one. She asks this question which tells me she still doesn't understand Obama is his own man, and that isn't saying much, anyway I digress.
Here is Paglia:

Too Late for Obama to turn it around. (5 paragraphs down)

Why has the Democratic Party become so arrogantly detached from ordinary Americans? Though they claim to speak for the poor and dispossessed, Democrats have increasingly become the party of an upper-middle-class professional elite, top-heavy with journalists, academics and lawyers (one reason for the hypocritical absence of tort reform in the healthcare bills). Weirdly, given their worship of highly individualistic, secularized self-actualization, such professionals are as a whole amazingly credulous these days about big-government solutions to every social problem. They see no danger in expanding government authority and intrusive, wasteful bureaucracy. This is, I submit, a stunning turn away from the anti-authority and anti-establishment principles of authentic 1960s leftism.

How has "liberty" become the inspirational code word of conservatives rather than liberals? (A prominent example is radio host Mark Levin's book "Liberty and Tyranny: A Conservative Manifesto," which was No.1 on the New York Times bestseller list for nearly three months without receiving major reviews, including in the Times.) I always thought that the Democratic Party is the freedom party -- but I must be living in the nostalgic past. Remember Bob Dylan's 1964 song "Chimes of Freedom," made famous by the Byrds? And here's Richie Havens electrifying the audience at Woodstock with "Freedom! Freedom!" Even Linda Ronstadt, in the 1967 song "A Different Drum," with the Stone Ponys, provided a soaring motto for that decade: "All I'm saying is I'm not ready/ For any person, place or thing/ To try and pull the reins in on me."

And I want you to read the whole thing, this is just a middle paragraph or so.