Good thing Iowa isn't quite as relevant as it used to be. I could see Palin winning this state if Huckabee doesn't run.
I think Iowa is relevant if prevents a decent candidate.
Like in 2004, nobody really knew who to vote for. Dean and Wesley Clark were the two guys people were talking about but nobody really liked. If either of them had won Iowa, the results would've just been ignored and NH would make the choice. But Iowa came up with two decent options in Kerry and Edwards, and the rest of the primaries just ran with it.
When Huckabee wins, people were "eh, no" and NH presented McCain.