Of course they want a smaller state, is anyone trying to dispute that? They believe that the welfare state has got massively out of hand. But there's no way you can think that everything they've cut is what they would have wanted to do anyway. The armed forces for example. Tory ideology does not tell us that a Conservative Prime Minister and Chancellor would be chomping at the bit to scale back defence spending.
And you haven't compared with what you think Labour would be doing. Ed M is not as left as he pretends despite all the Red Ed references, he made that clear at his conference. He doesn't want the welfare state to be as huge as it is either, what he wants and what the Conservatives want is for people to be working. Now getting that to happen is incredibly complicated but the cuts so far would have been very similar if Labour was in power and to pretend they wouldn't, to borrow a phrase from the Chief Secretary to the Treasury, is "living in cloud cuckoo land."
You're ignoring the actual facts here which are that people are living longer, you can't drive businesses out of the country, the taxes that we pay aren't enough to cover the welfare system now that we're trying to get spending back under control (though I assume you'd just tax the rich more, oddly enough the very rich feel they're being taxed quite enough and are rich enough to up sticks and leave, that you don't seem to think they'll do this makes me wonder why you think Britain is so amazingly wonderful compared to all the other countries and sounds rather... Conservative) Labour spent too much money and in a good portion of cases it didn't change things for the better. People don't want to be stuck on benefits. People want to be out there working. Now there are no jobs, but that's down to so many things that you can't seriously just blame this government. Labour were here for 13 years and this government's been here for one and half. Unemployment has been out of control for a long time, why pretend it's easy when if you were Chancellor you wouldn't have the perfect answers either?
The truth is, all three parties want the same thing. They want people working, they want all sorts of businesses coming here and paying taxes, driving the economy, they want a competitive market, they want a welfare section of the state small enough to be looking after only the people who really need it and that's it. How they go about trying to make these things reality is what differentiates them from each other.