> The public can act completely irrationally against its own interests under FUD (I guess we have some recent examples from the UK and the US), and in a lot of cases, they are better off not knowing.

FUD comes exactly out of not knowing. The more obscure the workings and negotiation of power are, the more mystique they hold and the more chances for spin they have.

Democracy is not and must not be limited to choosing your representative once every four years - it should be a living system of dialogue, where you constantly offer feedback and hear back from your representative (not saying it has to be personal). This is the only way to build trust and have a responsive system.