Would someone please explain to me why this is legal? IMHO it certainly isn't ethical to accept those contributions.
Schwarzenegger doesn't represent anyone outside the State of California, but raises money at a Rolling Stones concert in Boston. If he runs, Franken will challenge for the right to represent Minnesota, despite that fact he will likely raise funds for his run in New York.
Yes, yes, there are plenty of ways around it. "I was raising funds for the national party." and the like, but we know where the money ends up.
What kind of impact would a candidate from any party have if they were able to declare that they didn't accept any money from anyone outside their state or district? If it were the Dems, don't you think that would highlight the GOP's dirty money trails, or at least get more people to ask the question "Where did my candidate get the money for his campaign?" An added bonus to that question would be highlighting of gerrymandered districts.