Josh Marshall posts a good primary reform idea on his website (
http://www.talkingpointsmemo.com) and Kos has picked up on it too (
http://www.dailykos.com).
Basically, the idea is in 2008 have the 5 closest states from this year go first. Those would be Iowa and NH (thus assuaging those folks), Wisconsin, New Mexico, and Ohio.
The idea would be that every four years, the DNC will shift and have the closest states in the GE be the first primary states in the next cycle.
I would add to that that the primary season should be stretched out over a few months. There's no reason to have a nominee so quickly. In fact, I'd venture to say that I'd be fine with not having a prospective nominee until May or June. It'd keep interest high and help toughen up the eventual nominee.