Obama gave two speeches, one to his liberal base and one to the middle. Lots of inconsistencies, such as "I'm going to cut domestic spending and veto earmarks," while we "invest" in myriad new things. But I don't think most people noticed.
Obviously there's an opportunity for the GOP (and the LP) to point this out and hit the administration at a vulnerable spot, forcing it to abandon either "progressives" or moderates. If the administration is really inept, it might even lose both.
Another opportunity, much less obvious, is for the GOP to hammer the Democrats on Social Security. Specifically, they can say (truthfully)
Social Security is bankrupt. It owes more than it has, and its debts are piling up faster than money is coming in. We have to either cut benefits, or cut spending on other programs, or do nothing until the entire Social Security program collapses. *We* favor cutting spending on other programs in order to save Social Security, but if you prefer one of the other options, vote for a Democrat.
This forces the Democrats to either support cutting other programs -- and they would rather cut their own throats -- or cutting benefits (which is political suicide) -- or claiming there is nothing wrong with Social Security, which isn't political suicide yet, but can easily be made into it.