Far from being a miserable little compromise the Alternative Vote System has some real advantages. Here is the key passage from the Jenkins Commission, where it lays out some of the best features of the voting system we have a once in a life time opportuntity to chose.
126. Under our system, AV would have a number of positive features which persuade a majority of us that it would be superior to FPTP as a method of choosing constituency representatives. First, there will be many fewer ‘wasted votes’ in the constituency side of the election, and far more voters will potentially influence the result. This, we hope, will encourage turn-out and participation. Second, it would encourage serious candidates to pitch their appeal to a majority of their constituents, rather than just seeking to target a hard-core minority of the party faithful. This should lead to more inclusive politics than FPTP. Third, because second and subsequent preferences may count, it will discourage individual candidates from intemperate attacks on their rivals, since they will be hoping to gain their second votes and will not wish to alienate their supporters. This should contribute to the more consensual and less confrontational politics to which the majority of the public appear to aspire.
I’d say that was pretty postive.