The arguments are varied, and contradictory!. From those who argue that it favors the major parties, who believe that nationalist parties have seized the parliament.
In each other case, there is a scapegoat usually carried many styles: the D'Hondt system, the system of allocation of seats based on votes, and is designed to slightly favor the major parties.
Let the numbers to see what happens ... (Click to enlarge)

This table cutremente hit here as I can, we can see under the green votes each party got in Spain in 2008, and the percentage that such votes represent pure.
In yellow, the deal is done now based on those votes. We see that relatively more benefit is the PNV (+42% representation of what should be), followed by UPN and NaBai. But although relatively less than those who take big chunk are PP and PSOE, with about 9% of overrepresentation each (but in absolute terms are more seats). All other parties, including the reviled CiU, ERC, BNG and CC, are underrepresented. And the most outrageous, of course, are those small parties but all over Spain: IU and UPyD, to which bristles are robbed 80% of its power.
Further to the right, in orange, is what would result from applying the D'Hondt system to the votes of Spain as if it formed a single share of votes, without differentiating between provinces. I will not stop to discuss each case and that deviations are small and obvious that it is a more reasonable distribution, which benefits a healthy tad to big parties. For now, I plead innocent D'Hondt.
And in view of the disadvantages of divided into provinces to parliament ... What do we gain by this, I ask?
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