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As someone who lives in a jurisdiction where every single vote I can engage in is RCV (Australia; NSW) I can honestly say that it’s so much better than FPTP. I don’t know what the perfect voting system is (frankly a subjective topic as it currently stands; please feel free to correct me with statistically valid alternatives) but RCV at the very least means that I can (and personally have) never vote for a major party as #1 and I can know for sure that my vote has never been exhausted, because I’ve never left a blank box. We also have mandatory voting, which helps to keep things sane.
In Australia, government election funding is only ever allocated to the parties based on #1 votes, so I can also confidently say I’ve never contributed to a major party’s election coffers as I’ve also never donated to any major party. I obviously support one major party over the others, as based on my preferences, but I’ll always give the election funding to a smaller party or Independent.
RCV is a wonderful step to take from FPTP. I understand that it may not be democratically perfect, and frankly no representative voting system may ever be, but it’s a far cry better than FPTP. It’s a known concept that here in Australia politicians vie to represent the ‘middle’ rather than the extremes, because the vast majority of voters aren’t overly-enthused political lunatics. We still have our issues to be sure, but I’d rather that the political class fight over the centrist majority rather than court the political extremes in order to convince people to actually vote thanks to mandatory voting.
How come it's still leading to two major parties?
It's still not that old (~10 years or so iirc), it takes time for a third party to be major contentender. Earlier on you're more likely to see third party wins in more local than national level elections.
It's not an insta-win for third parties. But that's ok, because local elections matter, and that's where you'd typically see results first.
We have four Major Parties - Labor, the Liberals, the Nationals, and the Greens. If you understand their relative power based on our system of government, you’ll see that we’re somewhere in between the US and the EU with regards to representational democracy. It’s not great, but in the Anglospheric context we do pretty well because the others don’t have our combination of Ranked Choice Voting (RCV), Proportional Representative Voting (PRV) and Mandatory Voting.
Maybe it's just to me, but liberal/national coalition and labor seem like the two major parties, green is barely at the table still.
If you exclude the coalition, national has 4 times the representation of green, and liberal 3 times that.
Just my opinion here, but it's still two major parties, with the thirds coming up in ranks and getting some momentum going. It'll be a good day imo when the greens overtake the nationals (and maybe one day the liberals), but I personally don't see it as representative of the people yet. Improving, but still functionally two parties.