Hillary is the clear favorite, but yeah too many people act as if there is a single national primary or something.
Which makes the comparison to '08 more disillusion. Even if the distance between Clinton and Sanders is the same as between Clinton and Obama at the same time in '08, Clinton is clearly in a stronger position in Iowa this time than she was in '08. If Sanders can't score some early victories the same way Obama did his momentum will pretty quickly fizzle.
When DMR had Sanders within 7 in Iowa and his polling average was ahead of her in NH, I thought he had a small but not insignificant chance. The effect of Sanders defeating her in IA and NH both is unpredictable. His support level from minorities could change since it's mostly driven by them not knowing who he is. There's not the same kind of room for growth that Obama had with black voters- and Hillary handily beat Obama with Latinos- but they don't dislike him or anything.That said, I'm more bearish now that she has widened her lead in Iowa. The House Republican Benghazi Committee set out to destroy Hillary's campaign and ended up destroying Sanders.