It's a great question. I don't know exactly what would be better, but I'm sure we could make many improvements. It seems to me that the winner-take-all electoral college is very unfair, especially when it comes to very large states like mine (California). There are simply too many votes that don't count at all with this system. Additionally, I think our options are narrowed too quickly and the political parties have too much power. We need more options on our general election ballot. Often, I feel so compromised by the choices that I'm discouraged from voting at all. Don't even get me started with the primaries. They are much worse than the general election.
I love the idea Moglie mentioned about having more candidates on the ballot and ranking them.