I think that you make some really god points. I will say that in regard to the two party system, that's an inevitable result of the First Past The Post system that the U.S. uses. We'd have to change that in order to break up the two party system.

Regarding having parties at all, I don't have a good answer for that. Washington railed against it in his farewell address and called it fatal to representative republics. Unfortunately, I think that it is human nature to create these political unions, so I don't know what can be done about it.