I am with you 100 percent. I would say that one of the primary examples of the problems with direct democracy is California. Here you have a very liberal state, but because of the proposition system, when it comes time to vote on some of these issues only the crazies com out to vote.
Here in Germany, we have a strict representative democracy. But we have regional elections often enough, that the government gets to feel, if voters no longer agree with it. So it is a balance between short term popularity a long term considerations.