Demagogy is a strategy for gaining political power by appealing to prejudices and fears. Would this become prevalent in Interactive Democracy?
I'm sure it would, but I believe that the vast majority of British people would not be swayed by such crassness anymore than our politicians are today. After all, MPs need the support of the population if they are to stay in office.
It is the role of moral leaders everywhere to oppose base instinct and false logic, and to build empathy. There are many people within our society, leaders in positions of authority, who are well positioned to maintain our moral compass. Interactive Democracy gives them another tool to oppose prejudice and fear.