Is the destruction a problem? When a viable third-party rises up, you will again return to a two party system, that is true. But it will be with the new party that you want, not the old party that wasn't cutting it.
I feel like a broken record, but God, Americans need only look beyond their own borders for just a SECOND to see real-world examples of almost every other ‘hypothetical’ posed by all the armchair political scientists in this thread.