But the basic tenet of a functional democracy is that it is functional (duh). I have some doubts if the swiss model will stay both functional and democratic, in the mid-term future.
The referendum about quotas for EU citizens has shown a few disturbing tendencies: It is now possible for a referendum to issue a constitutional crisis where the government does not see a way to implement the referendum without damaging the country.
And if I listen to swiss people, they are completely not in agreement over whom they want to oust. Somehow almost all EU citizens are employed, and they want to oust the unemployed like they could even before the referendum.
But if the government doesn't oust anyone, it can't implement the referendum.
Another danger is that there have been increasingly xenophobic referendums. If this escalation maintains, democratic freedoms will suffer. If anything, referendums do have this tendency of distorting "public opinion" toward the emotional and down right hateful side.