Agreed. Representative Democracy is just a private club that represents noone apart from powerful interests. These Direct Democracy movements like the Pirate Party are indeed a step forward in my opinion.
Direct democracy, as in Participatory Democracy as it was in Ancient Greece, is a fairer and less corruptible form of governance. Everyone has a voice, and the most popular opinions voted on Direct Democracy Online Platforms find their way to the top. It's important though to always have good Constitutions which guarantee basic human rights and freedoms or it could risk becoming a Dictatorship of the Majority. Currently we are in the Dictatorship of the 0.1% and Constitutions are being trampled on and modified as it suits.
In Italy there's the 5 Star Movement which has an online Direct Democracy platform but also 5 inviolable principles (civil liberties, protection of the environment etc) and if they win in Italy I think it will inspire many other countries to follow suit.
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In essence, it is anarchy which is the only viable model for group interaction, but since the dominators have sought for so long to warp the meaning of words (even paying violent trouble makers to identify as 'anarchists') - we have a problem whereby the majority will run from the solution due to ignorance.
I don't have experience of direct democracy, so I can't say much about it beyond that it would be an improvement over the current corporate enslavement system!