I'll be honest, I did read the first page and then flicked to the last when I typed my post, and from the initial post that's what I took from it. After reading further I apologise for my mistake.
I can see your idea working at a very small community level for certain ideas, such as if a village wants to host a fete, they should be free to do so away from health and safety regulations etc, if that's what everyone wants. However, using the water analogy you used earlier, you said that everyone in Idaho needs to be on the same page. Does this mean that all of the 1.6million people that live in Idaho need to be on the same page, or only those that wish to partake in the discussion? What happens if there is one very stubborn individual in Idaho that despite all reasoned discussion is still going against what everyone else wants? Does the whole idea fail, or does this individual get ignored?
I agree with you current systems are nowhere near democratic enough and something needs to be done about it.