If a toss is bad, it is bad before it reaches its apex (except in an outdoor game with high wind conditions
). I agree with cmatthews, there was no legal touch because the ball was dead before it was touched due to the bad toss. The whistle doesn't make it so, it just lets everybody know about it. The time should still be 8:00.
Not sure about whether I like using JR's rule in this case. The question is whether or not this is a timing error. I believe that if the ball has yet to be legally touched, we would put the time back. Antoher example of this would be on an inbounds play. Ref tries to call 5 seconds, had whistle in hand because coach was asking him a question, ball is released, whistle is late, ball is touched, 2 seconds runs off the clock. If there were 2.2 seconds left in this scenario and you called 5 seconds, and now 0.2 shows on the clock, aren't you going to put time back on. The ball was legally touched inbounds before the whistle, but it was in fact dead before the whistle and touched after it was dead. That is the same as this jump ball scenario.
JR's rule does lead to a decent result from a getting started perspective. We can waste time putting the 4 seconds back on, or we can toss and play as JR says the rules would have us do. And since we have 32:00 or 31:56 to play, I don't think it matters as much as an end-of-game timing scenario.