Well. It's well within the realms of the delegate process, it's about depth of support really.
You may see it as undemocratic, and the caucus system really confuses me and is a bit undemocratic, but it's the way it is.
Ron Paul may as well end up with an unproprtionally large number of delegates.
edit:
"Delegates from the precinct caucuses go on to the county conventions, which choose delegates to the district conventions, which in turn selects delegates to the Iowa State Convention. Thus, it is the Republican Iowa State Convention, not the precinct caucuses, which selects the ultimate delegates from Iowa to the Republican National Convention. All delegates are officially unbound from the results of the precinct caucus, although media organizations either estimate delegate numbers by estimating county convention results or simply divide them proportionally."