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The lower chamber of parliament that votes on the regulation is directly elected and can rewrite and amend proposals. The higher chamber (EU Council) is comprised from government (or state?) heads which are either directly of indirectly elected with a length of 1. The commission (executive branch) that drafts the laws that are amended and passed by the parliament is voted in by a parliament which is directly elected.

Where do you get 4th level of deriviation exactly?

It's even less direct than national parliaments, which already are a joke.

And the unelected bureucracy, careerists, and 2-3 big country interests pressuring others under the table, are driving the show...

It’s just as direct as national parliaments. Citizens vote for MEPs.
But MEPs can't even introduce legislation, they have to get all of Parliament to ask the European Commission to initiate legislation, and the Commissioners are pretty far removed from direct election. Nobody elected by the citizens can initiate legislation.