You obsess over singular persons having power to do something. But in reality, Merkel is not at all free to decide this issue. For that matter, the government as a whole is not free to decide this issue, regardless where "the buck" stops.
Nor is Erdogan calling any shots, because he is only using an option that German law provides to any organ of a foreign state. To any Human Being actually, considering that there are cases of personal defamation pending.
Nothing special about Erdogan, except that he is exerting that option rather spectacularly to his own detriment.
The sad thing about this issue is that obviously a lot of people don't bother to appreciate the complexity of the issue and want to frame it as a question of who is in power and who is calling the shots.
If you don't want to be ruled by dictators, start recognizing law and institutions at work, rather than attributing everything that happens to the power and will of singular persons.