See, this is what I'm on about! Come and see the tyranny inherent in the system!...
Prop 8 is a perfect example of why direct democracy is undemocratic. Many people like to perpetuate the childish definition of democracy as "majority rule." But if you read theorist of democracy that have written since we have actually had democracies in the world (since the late 18th century - exact date depends on exact definition and probably whether or not you are English), you'll find that majority rule is not the biggest concern. Rather it is protection of the rights of the individual that is the biggest priority. The Federalist Papers are full of references to the "tyranny of the majority." They feared that shifting coalitions of 50%+1 would be able to oppress one minority after another. Next to re-conquest by the British Empire, tyranny of the majority was probably the paramount fear of the men who wrote the US Constitution.
Direct democracy is, by it's nature, based on the principle of the tyranny of the majority. Prop 8 is a crystal clear example. An extremely narrow majority of Californians was able to use the direct democracy mechanism to single out a minority group and oppress them.
Direct democracy mechanisms are a major threat to real democracy and should be abolished. Their rare good results are more than made up for by their frequent disastrous results.