I have 4 (hopefully) quick comments here:
1: Term limits exist in California for the state legislature. It's still a disaster. Term limits aren't the answer to bad government. They might help a little but in practice, they simply facilitate the 'democratic' change from one bad representative to another. The real answer is people who will vote for representatives who understand and believe in liberty.
2: The I&R process, on the other hand, *could* be an issue in DE. We have ballot measures here in California. In practice, however, the people voting for them vote much like the representatives would: lousy. They vote for nearly every bond measure they see, and so on. Again, the solution is a population who votes for measures that increase liberty.
3: Regarding state combos, I think it would be best to consider a system that doesn't impose systematic advantages in the east or the west. What I mean by that is this: if the choices are WY/VT or WY/DE then the east is at a systematic disadvantage because there will be conflic between DE and VT (as we have seen here). Because of that, we should either do 2 western / 2 eastern or 1 western / 1 eastern. I would propose 2 of each: WY/DE, WY/VT, ND/DE, ND/VT. However ...
4: If the population issue really does prevent ND/DE (which some people think it should), then I would argue for WY/DE as the single choice over WY/VT. It's true that one is in the east and one is in the west. However, their differences aren't nearly as siginificant after that. One of the major points of having two states is to provide variety to satisfy the differing desires of more people than a single state could do. The WY/VT combo doesn't really do that. They're both cold, they're both more rural, they're both farther away from major job markets, VT doesn't have a big city, etc. etc. In other words, VT is much more like WY than DE is. DE is warmer, has a big city (Wilmington MSA), is closer to major northeast job markets (Philly, and Baltimore/DC), and as a result would appeal to very different people than VT and, hence, WY. Since the idea here is to expand the appeal, the WY/DE choice makes way more sense than the WY/VT choice.
Okay, so point 4 wasn't that quick... ;-)
V- (live from Korea - I haven't been shot at *yet* ;-)