Linda, proposals for groups go to the site owner Strumelia and she discusses them with the Moderators. I'm sure we'll talk about your idea. I can tell you, though, that a lot of the groups get started with a fair amount of activity and then go dormant. Most of the state-centered groups are really small and don't have much going on. When I posted about a month ago in the California Group to publicize a dulcimer festival in Berkeley, I noticed that the last post was me a year ago announcing the same festival! No one had posted in a year! The largest state group is Michigan with 60 members, but even there the last post was 2 years ago. And some state groups are really small. Indiana, for example, only has 12 people.
I am of mixed sentiment on this. I can understand the desire for a central place to find people in a local area, but I also fear that too much content gets hidden in groups and now we have too many groups with too little going on. I joined the California group for exactly the reason you explain, and yet it hasn't worked out too well.
I'm sure Strumelia will get back to you.