yeah, it would be a start, but then you lose the representation for the people who voted for somone else.

I suppose the website could recalculate votes in parliament by weighting each members vote by the absolute number he won by. Then the votes of people who's candidate lost will reduce the amount 'their' MP is weighted. This will probably mean that lots of candidates have zero weight because more people voted for other candidates than for them (in a 3 way race).

You could also imagine (closer to the original idea) reallocating lost votes to the nearest winning candidate of that party and increasing their weight accordingly.

This could then be automated to see whether legislation that was passed was actually representative of peoples wishes, or whether it was an artifact of the system that let it get through.

This system would assume that local variations and "free votes" are evened out by allocating losing votes to a geographically nearby candidate of the same party.

Not quite as good as having 3+ mps representing each constituency and each getting a hat that said "i represent 125 people" but not too bad...
Every democracy is a compromise, I guess, since none of us have the time to vote on everything. :)

First Past the Post is, for sure, an imperfect system, but then PR, the great contender, would lead to other problems too, not least the lack of local representation, or at least as strong a tie as the current system provides.

Personally I'm more in favor of a separation of national and local issues, bringing more power back to local governments. Devolution in extremis, possibly, but I think it has merit. Bring the power closer to the people and perhaps they will engage? Who knows?

Right now I see local government as glorified rubbish collectors since everything important happens at Westminster. Perhaps larger PR constituencies for Westminster and more power to London Assembly like entities across the country? Who knows? Brains bigger than mine are yet to find a reasonable solution. :)
I don't think brains of any size are encouraged to think about this in case they find a solution that is actually fair and holds government to account for unpopular decisions.

There is a fantastic yes minister episode on this topic, where hacker is initially very in favour of a system of 'local democracy'
If ever a program nailed British politics, this is it. The ID card episode has such remarkable prescience it's scary.
Anthony Jay and Johnathan Lynn, who wrote it, admitted fairly recently they were being fed information from an MP so most of the episodes were close to, if not actually, fact.

They tinkered with the characters and boosted the number of latin jokes, but the political situations were pretty much real.
An engineering professor at York came up with quite a nice idea, which was to keep the Commons with the First Past the Post system, and then to radically reshape the House of Lords. The Lords would be reconstituted after every general election (and by-election) such that the total makeup of parliament (MPs+Peers) was proportional to the total number of votes cast for each party. Peers would be selected from a party list system. He also pointed out that this system could also allow the Lords to be used to adjust for demographics, too - ensuring that parliament was representative of the nation in terms of gender, race, etc.
That's actually the best suggestion for PR and the Lords I think I've heard. :) The demographic adjustment is an interesting one, although at that point the argument would become which demographics need representing.

Sex, Race, Wealth, Job/Profession, Sexuality, Religion, Able bodied / Disabled, Home Owner / Renter, Parent / Child-free, everyone will want their own nieche / subculture / special interest to be given consideration.

At what point does it stop being a demographic and start being a choice which is represented via your vote, I guess. No doubt we'd just get bored talking about it rather than actually implement anything, much like Blair's reform of the Lords.
That may have the result, mind you, of landing the BNP in the Lords which is a rather disconcerting result. :/