Maniac, you have to consider that the Libdems can't just 'tell' their supporters which party to put second, it doesn't work like that (this is assuming Brits have the ability to think for themselves, something I contend that Americans lack - but that's a different debate). Sure, they can indicate who they'd rather their supporters vote for, but your second preference vote is in no way linked to your first.
And in regards to Putin's situation a loooong way up:
"I don't think it's fairer. People who vote for unpopular candidates' votes count more than those who vote for more popular ones. How is it democratic if Candidate A gets 45% of the first preference votes while candidates B & C get 30 & 25% respectively, and all of Cs 2nd place votes go to candidate B so B wins? Supporters of candidate A don't get to have their 2nd place votes count because their first place votes go to the person with the most votes. Maybe supporters of candidate A all despise candidate B? Too bad for them."
If this were the case, and *all* supporters of candidate C preferred cadidate B to candidate A, then you have 55% of the voting population who prefer candidate B over candidate A. Sure, 45% didn't get what they wanted, but in a FPTP system cadidate A would be elected, leaving 55% of the population unhappy and therefore failing to uphold democracy - that is, representation of the people by *majority*.
So a more accurate respresentation based on Neocommunist's chocolate bar scenario: We're buying a 12-pack of chocolate bars to share between us. You and four others want Mars bars. Neocommunist and his three buddies want Snickers bars. Me and two friends wanted Dairy Milk, but knowing that Dairy Milk wouldn't be chosen we would prefer Snickers over Mars. Which chocolate bar would please more people?