@tec referenda are interesting as an example, I would say they are more efficient in a sense, but the cost of that can be coherency. For example, referenda in California have led to incoherent policies, because the public often wants to have its cake and eat it too: the public wants service X, but simultaneously doesn’t want to pay for it, so they vote for X but also vote against tax increases that would pay for X. This effectively forces the government to borrow to reconcile public demands, which leads to debt that the public also doesn’t want.
The government then gets criticized for borrowing, but in a sense, that is misplaced responsibility—the direct translation of an incoherent set of policies is the source of the issue, and borrowing is a symptom. This shows that representatives also serve the role of taking on coherent responsibility for coherent policy decisions, but citizens’ policy referenda can undermine that role in the kind of situation I described. Probably, the effects of this kind are less severe or even negligible in smaller, more internally cohesive populations like in Switzerland.
Feedback is absolutely necessary, and structural issues as you indicate are major obstacles. If SAVE is a policy proposal generator, it seems to serve the role of a structured public forum. Is that accurate in your view? It seems like a more democratized form of a special interest group. How would the interests become translated into policy?