I was wondering if at some point people in general will get disguted with the national government so much to the point where the parties look deep into the state/local realm for candidates. It would take a lot of money and a lot more time to build name recognition, but it might be better. Local politicians do a better job at serving their constituency and getting to know actual voters. The flip side is lack of responsibility on a major level might hinder their ability to deal with larger scale issues.
I think it would be cool to have a medium sized city mayor from one state run against a county commisioner of a county in another state run against a state rep of another state. Far more grassroots and closer to the people.
I've highlighted the part where you nail it. Name recognition and funds to get a message out get larger at every step up the political ladder. A weak candidate with a name and funds will trounce an unfunded noname at any level including president.
The other weakness you mention is also relevant. The scale of an office takes some time to understand. Jumping too many levels can lead to a completemisunderstanding if the scope of issues facing that office.
