What is the rational incentive to do so?
That doesn't mean that this is impossible. There seem to be two ways this coordination and prisoner's dilemma problem could be resolved. First, by a constitutional amendment (unlikely) or second in a similar way to the National Popular Vote.
National Popular Vote is a bill with the goal of making the winner of the popular vote the winner of the presidency. The way it works is that states pass a law to give their electoral votes to the winner of the popular votes ONLY until enough states with enough votes pass the same bill.
This bill currently has been enacted by 15 states (195 electoral votes) [1]
Why would the GOP want to give middling members the room to break rank when the margins of power are so razor-thin? What is the selling pitch?
Small state power is unchanged. Full stop.
Republican power is also not necessarily worse for the reason you gave: blue big states will also be more purple. PR is certainly in the favor of moderate republicans, whoever they may be.
California's legislature can choose between giving a high percentage (63.48%[1] in 2020) or 100% of it's electoral votes to the democratic candidate. Alabama's legislature can choose between giving a high percentage (62.03%[2] in 2020) or 100% of it's electoral votes to the republican candidate.
[1] https://en.wikipedia.org/wiki/2020_United_States_presidentia... [2] https://en.wikipedia.org/wiki/2020_United_States_presidentia...
I can't wave any magic wand for gridlock at that level, but that bypasses the coordination failure by not requiring coordinated steps at all.
PR != no districting.