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 We need something where people are not punished for regular and non-harmful activities.

Considering the gruesome behavior of governments over the history of humanity, democracy broadly certainly seems the least worst, but with obvious space for improvement.

The best governments from a liberty perspective today, is possibly Switzerland in the West or Singapore in the Far East. 
 Doesn’t Singapore have a rather authoritarian vibe going on? I’m only going on what a Malaysian was telling me.. 
 Yes, Singapore is rather authoritarian by Western standards, but they gave low taxes and are very orderly. 
 It’s the trilema all over again… 
 i remeber turning 18 in Geneva, Switzerland and getting to vote for the first time. There was an initiative to regulate whether villa owners could dump their sewers in the closest  river or not. As usual the city got covered in posters to help people make up their mind on what to vote. Some posters were saying "save the water, vote NO" and the other posters were saying "Do not sacrifice the water, vote YES" 
 What was the outcome? 
 i don't remember 🙈 probably villa owners had to connect to the sewers. I want to believe that anyways...

My point is, if the people aren't equiped to read legal jargon, then the loudest voices are governing opinions. Direct democracy is great, and a swiss can vote nearly every sunday on communal issues, cantonal or federal. Beautiful. But it is not the silver bullet that it seems without education.