Ok, now I think what you're talking about boils down to representative democracy vs direct democracy. I do think that's where the breakdown occurs, especially given the money in our representative democracy and our two-party system.
Because voting in a direct democracy would not be ceding power, it would be directly expressing it. Now whether we would "do the right thing" remains to be seen, particularly given the massive degree to which many are misinformed or misled.
Of course, once our will is expressed, thereafter comes the execution. That may involve similar apparatus to what we have now (DOJ, FBI, etc.). Not sure that wouldn't lead us right back to where we are now, with abuses, etc.
Maybe it's just a function of human nature.