I think some of us question whether we have real democracy in Britain. There is, as others have pointed out, no correlation between the numbers of votes cast and the numbers of members of the various parties elected. Many electors are in a position where their vote counts for nothing and where they cannot feel themsevles represented in any way by the person returned under FPTP for their constituency. And that is just for the lower house. The upper house doesn't even pretend to be representative or democratic, being purely made up of the politicians' place-men and women (often the superannuated members of the lower house or those who have failed to get elected to the lower house). And we all remain subjects of an antiquated monarchy in the name of which the government of the day can exercise massive uncontrolled powers through the royal prerogative.
Of course, it suits Labour and the Tories to keep things as they are, as each of them still hopes to have its turn from time to time with unfettered power. And you could argue that FPTP is fair enough if there are only two parties, but that is no longer the case.
I think that by comparison with a good many European countries we have a pretty primitive and pretty undemocratic system. It's no accident that it's the Tory Colonel Blimps who still think it's the model for the world -- the very people who are still living in an age before WW2 (if not even before WW1).
And by the way, you mention AV. Many of us saw that as a deliberate attempt by the major parties to kick the whole reform question into the long grass with a proposal that would satisfy no-one, the traditionalists because it was a change, the modernisers because it is not a genuinely proportional system. Those of us who want proportional representation could not vote for a system that, had it been introduced, would have frozen things in a thoroughly unsatisfactory position for years to come.