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The primary system may be crazy, but calling it "a bastardization of the Founders' vision" is a little silly. The Founders didn't even envision political parties. (Here's a brief history of the nominating process, which I think is correct even though all the usual caveats about Wikipedia apply.)

As for Iowa, the Straw Poll became important because George H.W. Bush won it in 1979 -- the first year it was held -- and went on to win the caucuses. It's doubtful that he would have otherwise been vice president. Since then it hasn't been all that reliable an indicator. The Hucka-boomlet may have legs, but I wouldn't necessarily count on it.