A big problem is the lack of moderates or other parties.

Absolutely agree here. I would fully support the US moving to a more representational, less 'winner take all' system.

, Huntsman, dropped out because of lack of support.

I liked Huntsman well enough. I would have no problem with him being president except for the fact that he would bring the Republican Party with him. Appointments and staff end up giving you the same people who were around for Bush (both of them), Reagan, and Nixon. If nothing else, I want Democrats in the White House to give us a shot at changing the makeup of the SCOTUS so the Citizens United can be overturned.

Both sides just want to pass laws and make more regulations.

Disagree somewhat, I this is an oversimplification. Sometimes people really do run for office because they want to make the world a better place.

On top of all of this, because of the lack or moderates

True, though there is more to be said here. Homogeneity can be said to be a Republican core value. Do what you are supposed to, don't stick out, and eventually you get ahead. This in itself may be neither a good nor bad thing (or at least it depends on your point of view), but it explains why the Republicans are so much better at party discipline. They follow the Reagan rule - never speak bad about another Republican. And they all vote together.

By contrast, Democrats have individualism as a core value. Whatever the merits of individualism may be, it makes it hard to get things done, even if you have a majority.

So in conclusion, a small group of Republicans can be more powerful than a large group of Democrats because the Republicans vote as a block. This isn't a terrible thing until you get situations like last Augusts budget crisis. This was a crisis that never needed to happen, but the Republican party stood together and ultimately cost the country billions because of the downgrade in debt rating.

People demand the bills be changed to add provisions that will satisfy the other party.

Well, politics is to some extent about compromise.

The country is too fucking split on party lines.

Agreed. The country is very polarized. People have this tendency towards brand loyalty that isn't exactly healthy. Again, I think the best solution would be to change the process so that more parties could thrive.