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In Australia we have preferential voting with no wasted votes, thought it would be more common
The issue is that the politicians benefitting from First Past The Post voting would need to be the ones to enact preferred voting. They benefit from FPTP because it locks voters into the two party “any third party vote is wasted” system. And they have zero reason to change that, because they would be legislating themselves out of office. The two big parties would suffer massive losses if people were able to vote for who they actually wanted, so those two parties have a vested interest in preserving FPTP voting systems.
Massive first preference vote losses maybe, but the preference flows would still trickle down to two major parties, it always does.
That preference flow data can then be used to shape future legislation to keep voters on their side and even to pull swing voters from the other sides, or at least that's how it is supposed to work when the media isn't actively working against you.
"hey we only won because of votes from this minor single issue party, maybe we should consider our position on that issue"