The SDP ended up as a very right-wing party indeed. The divide at the time was over Thatcherism, and it called itself "a friendly critic" of that phenomenon, welcoming its "classless opportunities".
The Liberals, of course, invented it. It was always an expression of Liberalism both as an ideology and as a culture. It still is. What we have now is not called neoliberalism for nothing.
What makes any Lib Dems think that Labour would touch them?
Nor would it need to: according to Ashcroft - Ashcroft! - Labour is 14 points ahead in the Blue-Red marginals.