The party of inclusion and diversity must break from the past, and develop a more rational and fair system of nominating a candidate. Iowa is too small, too "white", and overall its' economic interests don't represent the country.
I would say that both parties need a new system of nominating their candidate for President, but in fact it is only critical to the Democratic Party. While the Republicans have constructed their platform to appeal mostly to "white" voters, the Democrats are seeking to bring America together. So whereas Iowa makes sense for the GOP, Democrats should never allow this process to happen again.
The issues bend toward pandering on ethanol as an alternative fuel, even though most economists conclude it is not the most cost efficient. Also, much of America has migrated away from farmland, and the resulting issues.
Lastly, the idea that voters want to meet all the candidates, and personally challenge their credientials to be POTUS is not a sound one. Especially in 2008, the Presidency is lived on a large scale, through the T.V. and internet. It is most important how a person handles a large and complicated situation such as a regional or national primary. Over the next four years we will know our President through the press, in terms of the themes they think are important and how they respond to situations.