Well, I'm NZer so have a slightly different perspective. In NZ there is no second chamber so it was possible for previous right-wing governments to privatise and sell-off almost unimpeded, at a much faster rate than was experienced here under Thatcher or Blair. So from that perspective a less clear-cut mandate was fairly desirable.
The main problem with FPtP here is that the system seems to inevitably tend towards a two-party flip-flop, which if anything increases the role of party politics in every decision; only the opinions of a party that might at some point hold power matter, and only the two major parties have any chance of that. It might be that it doesn't have to work like that, but it's pretty tricky to think of any counter-examples.
There is a huge 'democratic deficit' at the moment in the UK, to the point where even eilte interests are becoming worried about a 'crisis of legitimacy' - the recent Power Report was pretty damning on the topic, and pretty much many of the most common objections in finding that people were not in any way withdrawing from public life, public action and public organisations like pressure groups and charities, rather that it's specifically parliementary politics that is viewed as being a waste of time. That Labour have done nothing about this and if the statistics are to be believed have made it worse is dissappointing, but, as has been pointed out, all of a piece with their other failures.