Yes, that is exactly how it would work. On the left we have a classic socialist party, a party of more moderate social democrats, a left wing party that emphasizes civil liberties, climate solutions and innovative technology, a left wing party for the rights of immigrants and emphasis on challenges in a multi-cultural society (they're pretty populist though), and there's even an animal rights party (don't think PETA, think smart people) who have the most ambitious climate solutions program of them all. They're not even remotely a one-issue party, they have an extensive program on every imaginable subject.
In the centre there's a party of moderate economic liberals who emphasize civil rights, education and democratic reform. Also somewhat in the centre there's a Christian party who are the most liberal and socialist of the Christian bunch, they also emphasize climate solutions.
Then on the right you have Christian democrats for the somewhat conservative, a party of economic liberals for the wealthy (they're also more socially liberal, but slightly more conservative when it comes to immigration and law enforcement, but you absolutely can't call them conservatives). Then there's a small fundamentalist Christian party of extreme conservatives, and this is where Trump would be sitting: the populist party of Geert Wilders for the islamophobes, and another party of immigrant hating economic liberals who also have an agenda of democratic reforms. They're like an extension of Wilders' party, only slightly less populist, they're trying to be more intellectual about it, and failing if you ask me.
The populists have never really been a real problem, since there isn't a single party in all of that who want to be associated with them. This is not just for ideological reasons, they also proved to be unreliable in the past. But it's not like they haven't mattered at all. Over the past decade and a half there's obviously been a shift to the right for most parties, even the ones on the left. This is because the electoral success of the populists forced all the other parties to speak out and act on the issues they were addressing, in hope of reaching populist voters.
But that's not exclusive to the populists. Every party has some effect on policies, even just by starting the debate on some topic. Even when a party never joins in the formation of a government, there's always what we call 'initiative lawmaking', that's when the opposition pitches a proposal for policy. If they manage to convince the government, it will become reality. For example, the animal rights party may never join a government, but they've been a continuous presence in politics, and thanks to them addressing the issues, there are huge reforms going on in what we call "bio industry", or intensive animal farming, which is not only an animal rights issue, it's our country's #1 source of pollution and co2 emission.