I think there's a lot of truth to this. When referendums are seldom, I believe there's a real risk of them turning into spectacle. (And at worst, a weapon for use by nationalists and fascists, like what happened in Germany in the 30s.)
When they are regular, and limited, and like in Switzerland not something pulled on a whim but actually requires some work to call, they might just work. But that also kind of assumes an informed electorate, which is perhaps the main point here – the electorate hasn't been very well informed, either way.