This is a Bell Curve:
Imagine that the left side of the graph represents the 'liberal' left, and the rights side represents the 'conservative' right.
The extremes of both ends being Communist and Fascist, respectively.
The small gaps on the extreme ends of each side represent the small number of people who are that extreme (pay close attention, EPICVIEW).
Because parties base their platforms on ideology, it stands to reason that they will choose one side of the chart over the other. Namely, Democrats choose the left, Republicans the right.
The goal of a political party is to get their candidate/party into power. To do so, you need the most votes. These two parties represent the vast, moderate majority of Americans, who only
slightly lean left or right. That will be the large portions towards the middle.
That's why we have two parties; it's easier to represent ideology