I didn't find any flaws.
I believe it exhibits formal balance, i. e. the balance of opposites. Say you vote for example Nader 1, Gore 0.1, Bush 0. I your opposite vote Bush 1, Gore 0.9, Nader 0. Say that because of the other votes, Nader is eliminated. Then your vote is inflated to Gore 1, Bush 0. My vote is inflated to Bush 1, Gore 0. So even after normalization, our votes continue to be exact antivotes of each other.
The price of lack of precinct sumability is worth paying to get the correct candidate in office. Bad governance is very expensive, possibly causing early human extinction, a very high price in my account book. In a given round, the precincts can report in their totals. The center then determines whom to eliminate and broadcasts this back to the precincts, which can then perform normalization and continue into the subsequent round.