California is one state among 50. People using it as an example of some sort of government being bad are objectively in bad faith.
Please inform me how my state's citizen referendums are bad? We are about to have a vote on voter ID laws, which I do not approve of, but what's important is that the people who care are able to have their will made manifest, and it will actually go up for a vote.
Meanwhile nordic countries have vastly more direct democracies and don't have the problems you insist.
If you cannot make your argument without california, you do not have an argument, because california's shitty government predates democrat control, because it was always built as this crazy world where rich and connected people had control. California's government is built wrong, not because of democracy, but against it.