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I've been told that the NZ system is largely based on the modern German government. There's 80 million-odd Germans, and they seem to be doing okay (I could be wrong about that though, I don't follow world politics very closely). People always mention the "scaling problem", but only ever as a way of dismissing the small country. No offense intended - or taken :-)

And it's certainly true that the USA has not always been Dem. vs Rep. - but it has become entrenched, through legislation, over many years. I really don't know the best way to undo that (assuming you'd want to), since it's in neither party's interest of late.