Then that is a problem with the largest parties, not the smaller ones. If they can't get along, then how are we to believe they represent the majority of Canadians. This inability to compromise is the problem with the larger parties, they are out for total dominance.
No - this is a consequence of your desire to make parties the the legal center of politics. Parties are about branding and are no different than Gap Jeans or Ford Cars. Parties must differentiate themselves to have competitive brands. For fringe parties they can cater a small group of single issue voters (anti-fossil fuel, abortion, native rights whatever) and need to push these single issues if they want keep getting their 5%. For the coke an pepsi parties they have a tougher job and can only differentiate their brand by opposing the other and no amount of wishful thinking on your part will change this.
That said, there are examples of PR states such as Germany where the fringe parties are so bad that the coke and pepsi parties create a 'grand coalition' but that means the voters no longer have a way to get rid of the government unless they vote for the lunatic fringe which is bad for the country and bad for democracy. The last thing we would want in Canada is perpetual rule by a grand coalition of Liberals and Conservatives.
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