This is a fair point. Too many dictatorships have used the "we know what's best for the people" mantra, but it is also true that people never think long term and that they loathe to give up something now even though they will get more of it in the future. Kind of like asking the Greeks whether they want those extreme saving measures on the referendum - now, irrespectively of why it happened in the first place and who's to blame, the only way forward is saving now and more money in the future when the economy recovers. If you actually ask the people, they're gonna say NO overwhelmingly so the only way to do it is not to ask people.
It's a fine balance. Another example could be British involvement in Iraq. Invading another country and putting British lives at stake, with or without official declaration of war, is a very serious matter, something that may not have gotten support from the electorate if it was put to a vote, but the government went ahead and did it anyway.
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