Nevada and Mississippi should certainly replace Iowa and New Hampshire. They are still small enough to allow for the in-person retail politics that Iowa and New Hampshire currently enjoy, while better reflecting the diversity of the present-day Democratic Party. And as an aside, it will force Democratic candidates to confront the endemic poverty of the inhabitants (predominately black) living along the Mississippi delta.
MS Democrats are actually less representative of the national Democratic electorate than IA Democrats. 538 estimated that 72% of MS Dems were Black, compared to only 58% for South Carolina (these estimates seem a bit low, but are probably relatively correct).