From the view point of dis-enfranchising the fewest possible voters, the district system (what you describe) works best. However, the two state votes should be apportioned as 1 vote to the candidate that received the most votes in the state and 1 vote to the candidate that won the most districts in the state.
However,
This would need to be implemented NATIONALLY to be truly representative of Americans. The only way that happens is via a constitutional amendment.
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As for this election, SCOTUS could simply say that the laws - not judicial decrees or executive orders - must be followed in determining what is a legal vote. The starting assumption should be that a ballot is not legal unless it meets the states requirements. If that is not possible for a particular ballot, the ballot must be discarded. Only legal ballots can be counted and all legal ballots must be counted. If it is not possible to separate legal ballots from fraudulent ballots, then the results of that precinct or election center must be excluded en-mass from the vote totals for the state. If there are tainted ballots in the batch, then the batch is poisoned and must be discarded. I.e. fruits of a poisoned tree policy applied to vote totals.
This does not overturn any existing laws, is in alignment with prior rulings, and fundamentally makes sense. Such a ruling should be applied to ALL states (not just the disputed states) as this will have significant impact to down stream ballots/elections,
However, the consequences will be that the election is overturned and Biden looses. Riots to ensue.
Wrong. Please read the fukking Constitution.