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I still dislike the list system, as it makes it easier for people to fall between the cracks of their representatives. I'm happy with it as a part of a hybrid system, and I wouldn't stop independents or smaller parties putting themselves onto the lists.
I was thinking of swapping the current 650 for about 550 directly elected MPs, with a further 100 based on the list system. The lists would cover around 20 geographical areas, which would give each area around 27 of the new constituencies, and 4 MPs to put forward.
I've not hugely thought this through, and would need to play more with it to see how numbers stacked up though.
Assuming a constituency size equivalent to about 5-10 current constituencies, an independent could still become an MP by taking 10% of that region's vote. Not so useful for the extreme of local-issue cases, but I would imagine that independents who garner enough support to be competitive in one current constituency would also have relevance across a wider geographical area.