Wow.
Ummm.... Wow.
I was going to suggest a dirty cartridge slot, as that is usually the culprit for this problem.
Although, that system card screen.... You didn't actually use a System Card, did you? You just used the internal BIOS on the Super CD-ROM^2 attachment, right? That rules out the cartridge slot.
You've got an internal problem. And that's not what I would classify a video problem. The video is outputting just fine. The problem lies in the information the CPU is providing the video circuitry. I'd say you have a CPU problem or a RAM problem of some sort. I'm not sure if it's fixable. We need to narrow down the component causing the problem which appears to be an IC on the logic board itself. Beyond that my expertise ends. Maybe someone else here who has done more internal tinkering can shed a little more light.