I don't think that we will see another era of moderate southerner democrats. The Carter-Clinton period is definitely ended. Finally, we will see liberal northerners taking the control of the party.
The Democratic party will be a true progressive party.
I disagree. While the era of Southern
moderates may be ending, the era of Southerners will not end for a long time. We may see more Southern
populists, though, while the moderates in the mold of Carter/Clinton begin to lose influence. Many of the rising stars in the Party are Southern, and that will continue, as Southern states elect Democratic Governors.
In terms of Obama not needing Southern states, that's been true of every election victory on either side since 1972 except for 2004, 2000, 1988, and 1976. The Democrats cannot afford to give up on the South, because eventually an election will come when, without the South, they won't be able to win on their current base. If the Democrats turn away Southerners, and become the Party of New England, then they will not be able to win elections anymore.
New England (the states from Maine to Maryland) hold 114 electoral votes, a number which will go down in 2010. The South (Old Confederacy + WV, KY, MO, and OK) holds 184 electoral votes, a number which will go up. If the Democrats want to forsake the South, they will need to focus increasingly on the Midwestern states from Ohio to Nevada, and it will be more difficult to win elections than if they would spend money on places like VA, NC, FL, and GA. To abandon the South is to give the GOP a major chunk of electoral votes for free, rather than making them fight for it. It's different than giving up the UT, ID, MT, etc., area; that bloc contains only 20-30 electoral votes, and is not growing at nearly the rate the South is.
It is easier, then, for the Democrats to spend money in a couple of Southern states, and spread extra money in other places, than to abandon the South and be forced to have an all-or-nothing campaign in the West.