Well, having two parties is not, by any means, a given. It's not enshrined anywhere in American law that there can only be two major parties. It's just that Americans tend to vote for only one of two political parties. The fact that they have a first-past-the-post electoral system tends towards two-party democracy, this is a rather well established fact. That could however be changed. I tend to favor proportional electoral systems myself personally, and would think it a good thing if America changed it. However that does not mean that there is no democracy.
As for being an American puppet. Well, the way I see it, having been born a citizens of the Netherlands, one of America's most loyal puppets, has allowed me to grow up in one of the wealthiest countries on earth, one of the country's with the highest degrees of personal freedom on earth, with the freedom to travel where I want to, study whatever I wish at university, read whatever book I want to, write whatever I wished to write, do whatever job I wish to, start whatever business I would wish to start, worship whichever God I freely wished to worship, or freedom not to worship should I so choose, freedom to buy wish products I wish to buy. I could go on.
I'm one of the healthiest people in the world, by virtue of my having been born in this American puppet state. I'm one of the happiest people on earth. I will live, on average, among the longest lives on this earth. I live in a country with relatively low poverty, and low unemployment, little to no government corruption, and relatively low crime. I'm safe, happy, healthy and prosperous. I can take pride and honor in that at least.
I tend not to take all those things for granted myself, and remember strongly that it was only because of American, as well as Russian, British, Canadian, efforts in WWII that I am free from fascism at all. And that during the Cold War America protected my tiny, puny, little country from being taken over from an altogether different form of totalitarianism, which would have also sought to take freedom and prosperity from my country.
And, just perhaps, I might not mind being an 'American puppet', not because I don't have any honor or pride, but because I have a sincere love and admiration of the United States, and tend to support the, on-the-balance, positive role the United States plays in this world. And that when the Netherlands acts, in its modest way, in furthering American goals, we indirectly further our own.