Also, we do have to appeal to whites. Even if every non-white American voted for the Dem, they would lose if that's all that voted for them. Maybe not further down the road, but right now, that's the case. What's more, turnout in the General among whites is higher than many minority groups, so I don't think that we should say we can win without anyone just yet.
What's more, we already win in CA. There's no question that the Dem nominee will carry that state. So why not give states that will determine the outcome of the election a choice of who they would back. MI, PA, FL, OH- all are important swing states, just like WI. And even NH and IA are pretty swingy, as they were two of the three states that changed hands this election. I don't think we should hold our most important primary in the most liberal states, just as I don't think the GOP should hold their's in the most conservative; it would lead to nominees that the swing states with middle America would be displeased with.