Well, consider the following:
I work a contracted armed security. The contract covers sites in two states. The pay was uneven between states depending on site but the same contract. The folks in the state with fewer sites was also the one being paid less, despite a. it being a father drive for most people b. needing more certification to work in that state and c. the cost of living in that local area being higher if you didn't drive father. So, folks there decided to unionize to help negotiate things. They got things rolling, and then invited the state with more sites in to combine forces. What resulted was the larger state hijacking the process, dominating the leadership of the union, and repeatedly screwing over the smaller group. Case in point, there was a motion to equalize pay between states and have gradual yearly raises. The larger state complained that this was giving the smaller state a 'larger and unfair raise' because it was a greater 'percentage' raise, despite them not actually making more and all the other things, and shut it down. This is just one of several things they've done.
I bring this up because this is inherently the issue with any "democratic" system, and precisely why the electoral college, for all its flaws, is around. Otherwise, a city could vote to tax everyone to build something in the city for them to use, taking money from rural populations who will never use it but whose votes are irrelevant because their nos will never match the cities yes votes. Your proposes system, while interesting, still runs this issue; any large population bloc will drown out and can therefor impose anything they want on smaller groups. If we were trying to fix just the electoral college, fixing the issue of Gerrymandering would be a thing, but not abolishing the system entirely. Of course, I'm not a fan of voting at all.
The flaws are inherent in any voting system, in that it allows people to vote to have another entity do things that they, themselves, would be unable to morally or ethically do, let alone legally. I posit that you can't fix the system by making a better way of voting at all, because that isn't the problem in the first place, but rather the real problem is the government and it's power itself. You can't fix that because its part and parcel to the entire system.
I posit that you cannot fix corruption in government be cause the government is, by its nature, corrupt in its very action.
