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Some anecdotal evidence that the word "liberal" has been successfully demonized: I have a number of print-on-demand shops at cafepress covering a variety of subjects including nature, peace, impeaching Bush, old-school skating, etc.
A couple of years ago I, too, thought it was time to reclaim the word "liberal" in its purest sense. Even though I have made sales in every other shop I opened, I have not yet sold a single item from my "Proudly Liberal" shop:
http://www.cafepress.com/proudlylib
People are still too afraid of the word - don't want their cars "keyed" - or something. Maybe this can change, I dunno...