Think of all those votes that didn't go to the Jedi Knight Party because they did not stand in the last election. All their votes were redistributed to the other parties as in FPTP you only get one vote for the candidates who are standing. It is the very fringe parties, such as the Jedi party, that suffer most from this system and by eliminating them from the choices on the ballot paper more weight is being given to these ultra-minority candidates.
It is a stupid argument that does not make any sense. In each round everybody's votes count equally, until one of the candidates get 50% of the vote. In each round you just have to pretend that the smallest party never stood for election.