I read a very interesting book on election systems by William Poundstone called Gaming the Vote. His conclusion was that Score (aka Range) Voting was the best system on offer. A brief explanation can be found at rangvoting.org; it's a rather simple and intuitive system. As to idea number 2, I had a similar idea a while back, I called it fractal hierarchy, and a few thoughts occurred to me. First, it need not be democratic at all levels. I was thinking that if you wanted to select for rationality then the entry levels might not be very good at this. This led me to realize that this was rather similar to how the US military is structured, and they are generally positively regarded and considered quite meritocratic, so it might be a good way to do things.

Another idea for legislative systems that I came across that is a merger between direct and representative democracy is called delegable proxy. The idea is that every member can vote on every issue, but they can choose to delegate their vote to a proxy voter, who can then choose to delegate all their votes to another voter, and so on, until you get a number of people with large chunks of votes. But for any issue, an individual can retract their vote(s) and vote how they wish. I think this system would allow for a lot of legislation to get passed, and would most strongly represent the popular will, but that is also it's greatest weakness, in that you get the issue of tyranny of the majority and ignorance of the masses playing a greater role.

I am working on a project right now to put these and other ideas into practice, and will make a discussion post about it at some point in the future. If anyone is interested in helping me to better articulate my ideas before I post them, please let me know.