1. Well, it's a bit more complex- DAO investors give up direct ownership in ether when they participate in the DAO in exchange for DAO Tokens. You're right that there could be some maligned incentives, but they fall on both sides of the ether valuation to a certain degree.

2. While the non-professional voters have little ability to do proper diligence, they DO have a mechanism for hiring outside parties to do diligence.

3. What complexity? Here's the source code, it's pretty darn simple: (https://github.com/slockit/DAO/blob/master/DAO.sol) Also, I think the DAO solves two problems: First of all, VCs and VC lawyers and Hedge funds have enormous secondary costs that the DAO avoids entirely. Secondly, VCs and fund managers also have enormously maligned incentives which may affect their performance.

(Note: I am still a skeptic of the DAO and did not participate in the experiment)