You could have stopped there. The major disconnect between public perception of the political parties and actual party function is the party ultimately nominates who it chooses. Votes are cast because it's assumed Americans wouldn't support a party that simply nominated a candidate via authoritarianism or autocracy, not because either party believes in the wisdom of the mob structurally. If anything, "wisdom of the mob" voting is more reflective of the Republican party's process (and with the nomination of Trump, it kind of showed).
You claim there was illegal redirection of funds. Was it actually illegal? Or merely in apparent violation of the party's charter (which could make the party less trustworthy but is not otherwise automatically illegal)? The best I can dig up is that there is a lawsuit alleging the DNC violated campaign finance law.
No, the modern candidate selection process in each of the major parties isn't an abstract response to theoretical concerns about what Americans would respond to, but a concrete response to real issues identified through previous nomination processes.
> If anything, "wisdom of the mob" voting is more reflective of the Republican party's process
No, it's not; the Republican Party process is designed to artificially create an insurmountable perception of momentum for the early leader because of experience about how early lead usually favors the institutional candidate, and the set of early primaries and caucuses favor, more than the country generally, the establishment faction of the party, so that this provides both the right candidate and a short competitive part of the primary with an early shift to general election campaigning. The Democratic system through 2016 (changes are planned for 2020 in response to 2016) in general design (pushing committed superdelegate counts into horserace delegate coverage hasn't historically been the norm) favors a longer competitive period and broader geographic competition but provides a safeguard against a hung convention. Each of these has failure modes—if superdelegates commit early and the media included them in horserace coverage, the Democratic system gets the same kind of artificial inevitability as the Republican system. If a celebrity candidate sucks up early attention with a large but weak field where establishment support is divided, the Republican method work against the establishment and lock in the same kind of advantage for the celebrity it is designed to for an establishment candidate. And if a well-funded establishment decides to take that fight down to the wire with whoever it has standing after the early winnowing, it can drag out into a long primary fight if the type the system is designed to avoid.
Very few people would have considered Trump "the institutional candidate", although I guess the GOP conspiracy has maybe fooled us. Even fewer people would have considered all the DNC superdelegate crap to have been a broad geographic democratic competitive scenario.
You may want to spot-check your data.
https://www.vanityfair.com/news/2018/12/a-new-report-puts-mi...
Keep in mind, the company contracted to produce this report, Fusion GPS, was also paid to produce "evidence" that north korea was responsible for hacking Sony in 2014... so you may want to spot-check your evidence.
And the consensus appears to generally be that NK did hack Sony in 2014, so I don't know what you're on about. There are suggestions of alternatives but nothing concrete or in accordance with the known evidence.
The DNC does not function as a popular vote, but with a complex system of campaigning, finance, and ultimately delegate voting.
The DNC seat was stolen through illegal redirection of funds, manipulation of public debates, and a deliberate media smear campaign which led to the DNC chairwoman's forced resignation.