It does seem to be a big determinant of how issues are viewed. I know I have heard talk in some places of trying to further separate the areas, for instance making a citywide area into it's own state, or merging certain areas.

Yes, most rural voters are republicans/conservatives and most urban dwellers are democrats/progressives, though I'm sure that doesn't hold true 100%. The suburbs seem to be a mix.

Georgia, where I live, has traditionally been a red state for decades although the larger cities (primarily Atlanta, Athens, Columbus) tend to be more liberal as well as many of the suburbs around Atlanta. When it comes to red vs blue, the numbers in Georgia grow tighter every year, but through gerrymandering and the electoral system, Georgia is still a red state and will likely continue to be for a while.