Okay let's play this through let's say after two years of your political system , a rebellious group started to form . This rebellious group is relatively strong in numbers let's say about one third of all citizens. This group is non-violent, it does inform citizens about upcoming votes etc. now another group says this group is violent and it needs to be forbidden. Everyone believes it. There is a vote Majority says this group is forbidden. Now what ? The members of the group are now restricted in their freedom. There need to be clear borders on what falls under freedom and what not but this rules would be made by the People now if the majority says Murder because of an religion reason is allowed then what ? The Problem i have is , if the people really are the goverment than id like Anarchy more as Anarchy would be exactly that no restrictions at all everyone does what they think is best for them. No leaders etc. In your system I can get away with murder when the majority says that it was allright to kill him. Last point if there is any majority of same-minded people in your system than this majority will all ways win or what would one do against that. What would the system do when everyone decides that living in your country is not so good and just leave.