On the contrary, it’s the high threshold that is causing the problem, since it throws away votes and forces people into unnatural blocs. Though the main problem with the threshold is that votes for lists that don’t make it over the threshold are thrown away. If those votes were subject to the same transfer rules as the excess votes the larger parties get, the problem would be much much smaller. And if instead of restricting transfers to one pair of lists, predetermined by the party leaders, they allowed each voter himself to decide where his vote should go, as they do in Australia and as NYC has now decided to do, then the problem would really go away. The Knesset would really represent the people’s preferences, and a majority could be formed by negotiating with each small faction independently, just as it would if you had to negotiate with the voters themselves. Or, if no majority can be formed among the people, then there SHOULDN’T be a government imposed on them by a minority.