I've always liked that model, in theory. And I think it would do very well in a homogenous (shared values, not necessarily ethnicity) society, or at least on a smaller scale than the US. Perhaps county or even states.
One HUGE benefit of the 2 party system that always goes unnoticed, or at least uncommented on, is the gridlock that occurs. Gridlock is a GOOD thing in politics because it means that status quo pretty much rules. Businesses know what to expect, so they can plan and grow without wondering what the hell the next admin is going to pull.
With the occasional exception, neither side gets 'their' extreme policies enacted and the country just motors along with relatively little influence from the .gov. At least historically. The only things getting done are the obviously beneficial.
What's messed that up in the last decade or so is the meteoric rise in the use of Executive Orders and the bureaucracy to enact 'law' or policy. Coupled with the Legislature abdicating their authority to keep the Executive in check is a terrible combination. There's no way in hell that the President and his cabinet should have so much influence on the day to day lives of citizens.
The Legislature needs to smack the Executive back into its proper lane. That won't happen, because it would require the congresscritters to actually do their job.