Edit: Maybe what we need is a limit on the number of years a PM can serve for?
The criticism that the Liberal Democrats ran in to demonstrates the problem: they campaigned for proportional representation, which I believe would be more likely to deliver coalition governments, and even on their most optimistic days I don't think they would believe they could gain a parliamentary majority. Knowing that, publicly signing a pledge around student tuition fees was hopelessly naive, as there was no way they could ever guarantee they would deliver on their pledge. And if the Lib Dems haven't worked out how to market themselves in a coalition government, you can guarantee the two main parties won't have done.
Otherwise, as you point out, there are many topics that will simply be ignored.
I'll agree that we need some system like that in Switzerland where a large enough proportion of the population can force a referendum.
We do, the country votes every 5 years. That's a democratic limit.
PMs die too but I guess you were thinking of a shorter hard limit.