Switzerland is no such thing.

Switzerland is a federation of cantons with a patchwork of different electoral systems with some mechanisms for citizen-initiated referenda.

In other words, only some cantons in Switzerland use direct democracy. I've lived for many years in Switzerland and everyone I talked to was pretty proud to call it that; but if you want, I'll correct it: many parts of of one of the richest, best run countries in the world works as a direct democracy.

Of course it's well-studied area, but you make it seem as if that means that there's a 'solution' or even consensus on its effects, which is a position so ludicrous it doesn't even warrant refuting. For the rest, your 'argument' about Switzerland shows that it is you who has no idea what you're talking about.