As a Brit, I certainly think it’s a problem, because as you say, you can end up with a government with a large majority of seats based on a small proportion of electoral support.

I much prefer the ranked choice system here in Australia. I’m sure there are flaws, but you tend to end up with candidates who are more representative of the wishes of the electorate, and you eliminate that “I’d better vote for A in case B gets in” vote-splitting thing.