Part of the problem with a two-party system is that at least one party must, at all times, be a coalition party; and when ONLY one is a coalition party, it will struggle to have the political will to accomplish much of anything. It can't effectively be a catch-all and ideological at the same time.
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Does their role as the collection of everyone that isn't on board with GOP extremism allow them to fight effectively? No, not really.
They have to choose whether to alienate people desperate for a home or try to build their coalition.