Get rid of FPTP and the Electoral College that enables a two-party stranglehold. If a vote for a third party wasn't a wasted vote, we could see nuanced parties and politicians emerge that don't have to tow a party line.
I think what you want is electoral rules which tend to select for consensus-makers. Approval voting would be an example.
In terms of strength of 3rd parties, I'd say they are generally quite weak in the US system, somewhat stronger in a proportional representation parliamentary system, and potentially overpowered in a FPTP parliament like in the UK.
Historically I believe the 2-party system in the US was pretty good at tamping down on extremism, but recently the 2 major parties have acquired too many extremists.
You're blaming both parties for where the US is now?
Big fat /s
https://ballotpedia.org/Results_for_ranked-choice_voting_(RC...