No dumbass, in a winner take all election system, it will ALWAYS end up as a two candidate system. The third party candidate will always siphon off votes from the major candidate closest to him in the political spectrum, ENSURING a victory for the opposing candidate. People are being smart by strategically voting for the candidate they think can win and is the least terrible option in their opinion, because the system FORCES them to vote this way.

A simple solution would be a multiple transferable vote system but good luck ever getting that legislation passed in a government dominated by two parties that benefit immensely from the status quo.