Other than on a couple social issues the Democrats are moving right nationwide.
There is nothing wrong or funny with what he said, though the truth behind his words is quite sad.
http://politicalcompass.org/charts/us2012.php
http://politicalcompass.org/images/usprimaries_2008.png
Go to politicalcompass.org for a complete description of Obama's rightward movement if you want to read about it.
Obviously this is a very inexact science and Obama's move isn't indicative of the entire party, but the original statement is echoed here. In general, Democrats have been dragged so far to the right by the Tea Party. Some might argue that the party hasn't moved entirely, just Obama has for practical and/or political reasons, but the party aside from moderates in deep red states is mostly behind him. True leftists don't seem to speak against him loudly. The majority of Democrats (not in either of those groups) have moved with him.
What is spoken even more loudly to me is that the last election proves the polarization has little to do with the issues. The parties haven't been more closely aligned (nationally) post WW2. They (mostly Republicans) just don't get stuff done.
I think the Economist (or maybe Electoral-vote?) had an article a few weeks back that there have been more unanimous SCOTUS decisions than ever before. Polarization on the issues is just nonsense when a totally political supreme court agrees so much. Some states might have had some polarization increases but nationally, no way.
Both parties are far to the right of where they were in the 2000s, and Democrats may have moved further, but every time they budge, the GOP just moves even further which is why it seems big.
A bit off topic, but I did want to give input on that issue.
LOL political compass "analysis". If you ever want to laugh, read their UK 2010 election write-up.