Democrats' only real incentive is to be better than Republicans. Since that bar is so low, it makes it easier to make much less progress and still be more electable than the Republican alternative. Also, because it's important to get elected and garnering at least some Republican votes is often necessary, then they have more incentive to play it safe.
If Republicans got their heads out of their asses and started making progress, instead of pushing for regression, then Democrats would have more incentive to push harder on their policies.