Pretty much, yes. The problem goes far deeper than the Democrats. If the Democratic Party were deleted tomorrow, the new party that would emerge to replace it would be functionally indistinguishable. There's only room for two parties. If the Democrats splinter, the Republicans carry all the elections until there's only one successor party left to oppose them. The Democratic replacement party will be dominated by all the interest groups that don't like Republican stances. And all those non-Republican interest groups already currently constitute the Democratic Party of today. The king is dead, long live the king.This is the core of the problem with American politics. "Y is bad, but X is WORSE!!!"
How many seats are really competitive in the House of Representatives and the Senate? Disturbingly few. 10%? There's potentially not been a single election seat swing larger during the lifespan of most of this forum's users. The fundamental problem of a system with only two parties and near-guaranteed seats is colossal political complacency and easy capture by vested interests outside public will.
This is without dwelling much on the media, lobbyists, etc. Complaining about the Democratic Party is like complaining about the pain in your stomach rather than man who keeps punching you in the abdomen every morning.