Lightly populated Iowa and New Hampshire may not be “representative,” but are cheaper places for an unknown candidate to get started than a big state.  They also give everyone a “screen test” without swinging the final outcome.  Think of all the wheels to grease to get on the ballot or to win blocks of votes in a place like California or Texas.  Victorious local favorites would also start with an immense advantage in delegates, prompting others to quit from the get-go.