We've kind of decided on using a democratic process, which indeed is a form of mob rule.
As for the danger of this approach....so multi-millionaires have one less global city they can buy property in completely hassle free....I think they'll find a way to survive.
"Ochlocracy ("rule of the general populace") is democracy ("rule of the people") spoiled by demagoguery, "tyranny of the majority", and the rule of passion over reason, just as oligarchy ("rule of a few") is aristocracy ("rule of the best") spoiled by corruption, and tyranny is monarchy spoiled by lack of virtue. Ochlocracy is synonymous in meaning and usage to the modern, informal term "mobocracy", which arose in the 18th century as a colloquial neologism."