As a Swiss citizen, I think the swiss system is very close to perfect in this regard.
Sure, emotional and stupid arguments sometimes prevail, but most of the time the people make the perfect decision. Public discourse is most often also very rational, more so than most world parliaments.
Irrational arguments have been a staple of especially the British political system. I am amazed at the low level of discussion in the UK even by their representatives.
Direct democracy is something that has to be done regularly, otherwise you end up with situations like the UK or California.