Here is a less unhappy variation:

In this case voters' opinions are highly polarized, but the candidates' positions represent a compromise. Almost all of the voters are relatively unhappy. As unpleasant as these outcomes may seem, they still represent successes of the democratic process. No other choice of leader would have led to a better result.

If we add a third candidate, the democratic process does not even necessarily produce the best result.

In this case the Spoiler candidate takes away enough votes from the Good candidate to allow the Bad candidate to win. This is very likely to happen if there are three parties.