This is true also of Democrats and Republicans. In fact, I bet you do not even know the last year that the government size decreased (I do, and it was VERY brief).
The rest of your post can be explained simply:
1)Most people don't want to 'throw out their vote' by voting for a third party. By your logic, all third parties are dilusionary. If that is your opinion, you are entitled to it, but I think most people would disagree with you.
2) Due to #1, third parties do not have funding to promote their ideas, candidates, etc.
3) Thanks to Republicans and Dems, unless you are a 'major party' candidate it costs a lot of money to get on the ballot, and most third parties use a great majority of donations just getting the necessary signatures to get on the ballot.
4) Republicans and Democrats both take your tax dollars with matching dollars in campaign contributions from the federal government which means they get millions more to spend on advertising.
5) Publik Skools barely do a decent job of education. They teach that we live in a 2 party system. I have met many people who had never even heard of the LP before I talked to them.
Ugh....deflection. Again one [1] Libertarian?
The rest is excuse making as to why the Libertarian message hasnt caught on. It hasnt caught on because nobody [relative term] agrees with it.