>How does this plan take power away from the states?
Because for it to work, every state must agree to it, and to prevent future defections, they must be prevented from changing their mind. If a state agreed to the national popular vote in this election, but saw itself as a battleground state in the next election, without a constitutional requirement they could easily change back to "state winner takes all." As we see with the rush for early primaries, we can assume states will act in their self-interest even if it puts their neighbors at a disadvantage.
>>Third, if you will recall, the recount issues in Florida were extended to only a few counties with widespread problems, not the whole state. ANY county or precinct with alleged problems or fraud, no matter the circumstances, should have to recount their votes, so what happens in Florida will in no way cause votes to be recount in Oregon.
The closeness of the Florida vote triggered an automatic machine recount of the entire state. In addition, Gore asked for a hand recount in Broward, Miami Dade, Palm Beach, and Volusia counties. This of course was argued as unfair, since it was basically recounting heavily-Democratic districts. To quote Wikipedia:
At 4:00 p.m. EST on December 8, the Florida Supreme Court, by a 4 to 3 vote, ordered a manual recount, under the supervision of the Leon County Circuit Court and Leon County Elections Supervisor Ion Sancho, of disputed ballots in all Florida counties and the portion of Miami-Dade county in which such a recount was not already complete.
This was set aside by the Supreme court, but it would be the natural progression for a close national election.
>>Fourth, voter fraud is actually quite uncommon. And counting all votes would not change the fact that there are democrat-leaning precincts and republican-leaning precincts. That's not going to change.
In my opinion, part of the reason fraud is uncommon in Presidential elections is because you have to perpetuate it in several states at once (Well, okay, granted you can do so with a large battleground state, but you have a lot more flexibility with a national popular vote). With a close election, manipulating the votes of a large metropolitan area (Chicago, perhaps?) might be enough to swing the election.
>>Finally, we're not going to have a Parliament anytime soon, so let's concentrate on making our system work. My solution is to forget the electoral college and just count every vote.
Well, count every vote, then immediately throw about half of them away, since the losing side doesn't have a voice. A proxy system would make for a more representative -- and entertaining -- Congress, as you would have every popular viewpoint and opinion represented, and each person's vote would directly translate into the power of the person representing them. A Libertarian candidate might only get two percent of the vote, but that would be the equivalent of two Senate seats (and roughly nine seats in the House) in terms of political power. And hey, if you are going to be amending the Constitution anyway, you might as well do it right.