That voting system is indeed too idealistic. The ideal is that if 65% of a voting population votes for the more popular candidate of Party A, everything above the cut off would go to the next highest candidate that belongs to Party. That way 65% of the voting population is ideally represented by the same political Party.
There are a bunch of problems with this of course. What if the 2nd candidate is under investigation for eating babies? Or who is to guarantee Candidate 2 will make the same policy decisions? No one would ever vote opposite of their party's position! \s
I believe Australia had an incident were almost no one voted for a politician but they still won. Vaguely remember that was ~20 years ago and a lot of people were not happy with that.