Yes, you are missing something, ron.
What has been missed by everybody for many years is the fact that the function of a Parliamentary election is not for voters to elect a government but to elect Members of Parliament to represent their interests at Westminster. It is those elected members who choose a government. So long as there are more than two parties there is every likelihood that the government will be formed by a party with fewer votes than the rest combined.
Party politics is responsible for this and the system we use was not designed to cope with party politics. It was designed for constituents to choose their Member to go to Westminster, and he would vote on individual issues according to their needs.
Any remedy (if one is necessary) must involve one of two things: either the connection between the voter and an identifiable, electable, Member of Parliament must be lost (voters will simply vote for a party to govern and it will be for the party to select their MPs); or the connection between an individual candidate and a “party” must be outlawed (highly impractical). If neither of these two principles are adopted no voting system will overcome the apparent weakness which seems to trouble many people. Any attempt to change the voting system without doing so will simply replace one perceived injustice with another.
Without these changes all the alternatives to the “first past the post” system suffer from the same problem – that of the voters’ intentions being modified by some means. The proposed AV system suffers particularly from this.