Interesting hack. I'll point out a couple things you may not have thought of though:
1. The U.S. legal system is designed to go slowly. That's what checks and balances are for. It takes a long time to see the full implications of each law (look what happened when Glass-Steagall was repealed), and if the laws change every day, you can end up whipsawing with no idea what really works or not.
2. How will the laws be evaluated? In the U.S, you have judicial review, where cases come before the courts, the facts come out into the open, a jury of your peers evaluates how the law applies to those facts, and then the appellate court system ensures the law was applied correctly. If the law is egregiously wrong, there's widespread publicity and then public pressure to amend the law. How does this same sort of fact-based discovery process factor into your system, and how do you avoid it devolving into a "he said she said" contest of differing opinions?
3. How will you get public buy-in? Democracy's based upon the consent of the governed; when everybody writes their own version of the laws, each person could make the argument that they didn't consent to the other person's version.
4. It seems like this would replace plutocracy (government by the rich and well-connected) with technocracy (government by the quick-thinking and technically savvy). As a technocrat, I'm all in favor of that. ;-) But it seems like you're just exchanging one set of masters for another, and in many ways, this new system is less fair than the old one. What happens to the 95% of Americans who are not accustomed to thinking at Internet speed? They're already being left out in the cold by many economic developments; will you exclude them from the political process too?