I strongly disagree with this. Afaik they don't even have a single person based permanently in DC, and they don't generally play the DC/lobbying game. If anything, that could be considered a criticism of the way they operate (too idealistic, not compromising enough to be pratical). But they certainly haven't become a "DC thinktank."

They're very much still a grassroots organization. For example, they had a big impact in the anti-SOPA and CISPA campaigns.

To a degree they've shifted their work to providing legal representation to technologists in courts. But that is very, very important and much needed work.