", if they want to get votes on the right, there is only one party they can take from - the Conservatives. Labour will be laughing their heads off at this new pitching. "
Not necessarily. They could win over the same voters who kept New Labour in power (those who didn't vote Conservative, anyhow).
I'm not a Liberal Democrat, but all this resentment about their dealing with the tories really strikes me as quite childish and kind of gets under my skin. Yes, nobody voted for a Con-Lib coalition but frankly that's the standard of what you get in a proportional system which so many of the same people chamption. It also really was the only practical alternative save for forcing another election (in which the likelihood of a complete tory victory was much higher).
Depending on how they do in office, I reckon the Liberals might actually have a more optimistic future than Labour, not that it's saying much (as I said in AOG's thread, I think Labour is heading for one hell of a crisis).
Either way, for better or worse I reckon we've got a big period of Conservative pre-eminence coming up in the near future.