You're right in terms of impact on the general election. However, i was speaking purely to the affect it will have on the candidates chances to get the party nomination.
You're right that Iowa will most likely still go republican, but I think its important to note that this is the biggest caucus turnout in Iowa history, and since those people are the ones that propelled Obama FTW, the general election (atleast, if he ends up being the Dem. candidate) will be a lot tighter than it was for Bush v. Kerry.
Yeah, I could be completely off about whether Huckabee being nominated for the Repubs would be good for Dems. I think it would due to his polarizing affect on non-religious liberals, as well as his socially conservative standpoint. I could be wrong, but I think less indipendant (swing) voters will vote for him than they would for Rudi or McCain, and that less people would cross party lines to vote for him.