I agree that more radical reforms are necessary. Do away with the two-party system. But I think we have advanced to the point where we should move towards a more democratic form of government. These fiscal cliff discussions should be held before the public, and ultimately we should have referendums on any major tax or entitlement measure. Let the People voluntarily raise taxes, or let them voluntarily cut what entitlements they deem fit; rather than bought off politicians.
Furthermore, the system should enact parliamentary rule changes to allow for greater public debate. Let the Speaker of the House and Minority leaders debate continuously, yielding time only to members who have something substantive to offer in debate. Speeches should be reserved for days allotted for that purpose by the Speaker. The presiding officers of both Houses should be nonpartisan appointed officials selected to serve on a panel and enforce parliamentary procedures, particularly forcing members to ask questions or present arguments rather than long and drawn out speeches. We should also have filibuster reform, and require members to actually filibuster (stand there and talk indefinitely, without break) publicly in order to stop legislative action.
We also need to do away with money in politics. An amendment to the Constitution making all elections virtually entirely publicly funded, with donations and contributions limited to political primaries, drastically reducing the total amount allowed for donation, offering 3:1 government matching funds, and fixing the price of political TV/radio advertisements through the FCC (using the tax code).
We should also institute term limits in Congress and the Supreme Court. I would also say we should create a private and separate legal institute, governed by the brightest legal minds to form a meritocracy of sorts that could recommend potential Supreme Court nominees, rather than Presidents using the opportunity for political advantage. Bush and Obama's picks have all been highly partisan selections that brought no balance to the Court. We should have impartial jurists on the Court like Kennedy (even though I disagree with his worldview), not the ideologues that dominate it presently.