Your solution ignores that all we really need to do (and I say that like it's easy but I acknowledge it's not) is remove the parts of our system that prevent an accurately representative government. Stuff like the electoral college, the cap on House seats, and the dominance of plurality voting. The root problem we see here is that a minority of people have more power over the government than the majority of people.

Like I said, this is much easier typed out than done, but it is not impossible, and is much more likely to succeed than "make a fascist country and give it a humongous border with the democratic country that it views as 'the enemy'" Even if there were a clean way to split it up (there isn't: cities are blue, rural areas are red), much of the red state's income comes from the federal taxes from blue states. Do you really think that's going to end well?