True, and we have to find a way to overcome the "I don't want to throw my vote away" mental block. That's some heavy lifting.
It's not a mental block, and it can't just be overcome. People don't vote that way because they are stupid, they vote that way because it's the best way to vote. In any simple majority democratic system, any two parties can gain ground against the rest by combining. This continues until by reduction, we are left with two parties, which are themselves nearly identical.
The problem is baked into our voting system, and it's not the fault of some mental block on the part of the citizens. The simple majority ballot is provably bad at arriving at the best candidate. There are a multitude of better voting strategies out there, but those will never be implemented because arriving at the best candidate is not the point.