While your critic is interesting, let me just point out how this way of doing democracy is far superior to any western country.
My conclusion is that the smaller you go, the more democratic olitics are. Period.
I share my criticism of the political globalisation, just to be laughed of afterward, but I still believe that the smaller, the most democratic, as is explified in a great way by Iceland.
Edit: Found this:
http://en.wikipedia.org/wiki/List_of_countries_by_system_of_...
Of all the small countries, this leaves, well, ahem... Iceland.