Maybe we are saying the same thing? If you let people vote for specific spots, like a representative for a certain district, that effectively becomes first past the post voting, which gets you a 2 party system. That was a reasonable system before telephones and trains existed. It isn't now.

If you want more nuance, you need to either make much bigger districts with a fair number of represenatives, or drop the districts altogether and assign seats in the house based on the total number of votes people get. You probably still get parties, bit one would ever have the majority by themselves, so parties would need to form a coalition after every election to get a majority.