The problem with direct democracy, as I see it, is that it can be gamed just as easily for short term gain. Given how politics works in the US, as well as all the lobbyists and advertising budgets that go along with both of these I'd say that any policy that came up for a vote would be skewed one way or the other because the voter saw some "information".
Imagine SOPA had gone to a public vote. Who would have won, Hollywood or the public interest?
The bigger problem with democracy is how to stop the majority from prosecuting minorities? If majority of people voted - e.g. would gay marriages be allowed?! Would smoking tobacco become illegal (as in same laws that govern marijuana users cover tobacco users)?
Imagine SOPA had gone to a public vote. Who would have won, Hollywood or the public interest?