I'm not a fan of direct democracy at all. The majority of people's knowledge of important statistics on subjects such as crime, employment, taxation, etc, has been severely twisted by media sensationalism. Putting people who have a shaky grasp on reality in charge of a country is a recipe for disaster.

Though Liquidfeedback doesn't seem to be quite as direct as that. Whether it would work in reality would depend on how these proxies get their information. From reliable sources, or newspaper headlines and angry blogs.