It is designed to ensure that no region is ignored by the candidates.
Yes, the most popular candidate can and has lost the election.
A candidate that focuses solely on the urban areas of the nation can 'win' the popular vote while ignoring the other areas of this nation. While the other candidate, who focuses on the whole nation wins the election.
The only change I would suggest to this system is to award electoral votes by congressional district plus 2 for the statewide winner, the District of Columbia would be reduced to a single electoral vote.
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