Not really since most of those parties end up just compromising and getting mashed in with all the other parties.
And yes, a two party system is tough on third parties, if the third party is trying to win. What most smart third party candidates try to do is make enough noise that people take notice and force the Big Two to address the issue he is trying to bring to light. Either that or just try to spoil an election.
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according to my mongoose, anyway.
The_Rorschach 
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