Are you criticizing the 4th Cir or the DC Cir? Either way, the law was written that way on purpose to pressure the states to set up exchanges and to shift the costs so the AFA could be "deficit neutral".
I agree. The intent of the law was clearly that the states would setup exchanges. It was intended to “make” or provide incentive for them to do so.
The law is unworkable in states that did not opt for expanded Medicaid, with or without the subsidies.
Most of the states that opted for the federal exchanges, also turned down expanded Medicaid. Without expanded Medicaid, the federal subsidies are unworkable. They would leave a huge gap of people in the middle, who would have to pay the full, high rate for Obamacare coverage. The Feds cannot force states to expand Medicaid coverage. Therefore, the law collapses under its own weight.