Well said, Webley.
But I think that the problem isn't with the two-party system itself, but with a system in which the leaders of the parties don't really differ much when it comes to actual policies, but use several "red-herring" issues as a way of keeping the base of each party from noticing that, and keeping them loyal; the system is now less one of differences as to governance, and more one of just getting elected, and reelected, and so maintaining one's power.
But enough on party politics.