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It’s the fear of saying something clear and offending someone that is paralysing the Labour Party. Like a rabbit in the headlights unsure where to go and getting crushed in the process. The dithering middle ground clearly doesn’t work. Look at how well the parties with clear policies did in the recent EU elections.
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I wouldn't say that Corbyn took a 'middle ground' position in the EU elections. I think it was more of a 'higher ground' position--the similarity being that both can be (and mostly are) intended to appeal to voters from 'both sides'. Obviously, it may not be a vote-winning position to take, but I'm not sure the EU elections tell us much about a potential general election.
I have no idea what would work in a general election. The problem for Labour remains that while switching to whichever form of 'remain' (it has variously and sagely been noted that the People's Vote campaign made a key error by becoming associated firmly with, and effectively equivalent to 'Remain') might get them more votes in total, they need to win many seats that voted for 'Brexit' under FPTP. If the Tory vote gets split between the Tories and the 'Brexit' Party, will Labour be able to overcome voters defecting to the Lib Dems? I don't know. It's certainly bloody hard and not something I would want to have to think about.
If only things were as easy in the real world as in the echo chamber we have here ...