Both the swiss and the german system are working well, I don't know which one is better, both have their pros and cons. I think if you want to have more direct democracy (after all we do have referendums but only on state level) you have to go the full way and implement a swiss like system or else you will run into things like the brexit referendum.
Agreed. The Brexit referendum was in an environment of usually having only representative democratics. Politicians first took it not seriously, then they started to turn to propaganda (on both sides). A more continuous direct democraty would develop a culture of dispensing information and personally I would accompany full direct democracy on federal level with certain information duties the state has to fulfill regarding decisions.