Dear Raphfrk, it did not think through all you wrote yet, but one point troubles me:
Also, it is majority compliant. If a majority support a candidate first choice (i.e. first choice and nominate him), then he cannot lose.
If that is true, your method cannot be a solution to the given problem, since any majoritarian method will elect A in the situation I described -- remember that voters are strategic!
Yours, Jobst ---- Election-Methods mailing list - see http://electorama.com/em for list info