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That's the best case I've heard for direct democracy right there. Not in the positive sense, but in the practical sense. It's also a very common argument for anarchy. Why do we need government to handle a massive amount of our lives when those things could be specialized by individual groups that are really good at them?
When I've mentioned this to people, I've said would you get your taxes done by the guy that changes the oil in your car? Why on earth would we put so much into one institution? Well, there was a time when that made more sense.
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It probably won't look any more like California's system than the early republics looked like monarchies.
The corruption inherent with representative government is pretty obvious to everyone and the technological limitations that led to it over direct democracy don't really exist now, so I think it's likely to be attempted somewhere and it may catch on.