It already exists without crypto tokens and it's called a referendum.
Different countries use it to different extents. The Swiss Country does a lot of it, for example.
But referendums are not always a good idea and are extremely prone to manipulation by the media and populism (see Brexit). Minorities are also underrepresented in referendums, which poses a real problem with these things.
Having an elected government with separation of power is definitely always better, than whatever DAOs are doing.
Being open source does not make it good by default.
The ledger being visible to every node makes it pretty bad. You can figure out the identity of users just by circumstantial evidence.
And just because it's not controlled by the government doesn't mean, there aren't powerful corporate people inside that can and will enact control over the chain. Otherwise Ethereum classic wouldn't exist and Jordan Belford or Peter Thiel wouldn't be fans of crypto.