The difference can be used to bargain with incumbents to compensate for their current position, while installing a new type of government in its place that is better. It's a pretty hard problem but I don't think it's impossible. I'm pursuing this kind of thing in Finland presently.
They don’t need to. When the informed minority on an issue gets lazy, stupid or cynical, however, the system dies.
Anyway, this really needs an explanation of what your idea of "real democracy" is, and what "replace power" is supposed to mean.
Anyway, the answer to your question of "how" is likely: at your own peril. ;)
Like what?
Why not? Is it just that you have not experienced it, or is there a more principled argument?
My personal experience is that democracy feels to work much better in smaller (sub 10 million people) than larger, but it could also just be correlation not causation.