The problem lies in that populist governments essentially make irrational decisions just to stay in power (appease the public), which makes most forms of government populist in one form or another and democracy in particular extremely susceptible to it.
This usually manifests as short-term actions with negative long term effects (i.e. taking too much debt, rather than being fiscally sound).
I always wondered if a random-cracy wouldn't be better in the end, just pick anyone that cares to have a position by lottery and have a limited term and basic checks and balances.
At least it statistically makes a mediocre government more likely, not just as an upper bound.