OK, that's truly bizarre. I don't see why they didn't cut directly: (a) from the contestant saying the title to Jim announcing the win; or (b) from Jim calling for the judge to Jim announcing the win. Presumably something went really wrong with the re-take, which would explain why only saw the video from it. (They didn't check before everyone went home?)
Nevertheless, even given what the editors had to work with in terms of both content and technology, ending the show almost any other way would've been better. For comparison, I think of the times on original Pyramid when Dick announced that a Winner's Circle "loss" had, upon further review, been turned into a win. Even in such an awkward situation, I seem to remember Dick handling it very well ... which, of course, also means that the show was edited very well to make it look that way.