Just look at California if you want to see the outside influence of wealthy entitites when there is an initiative process in place.

The very rich Mormon church singlehandedly got an anti-gay marriage initiative passed.

In 1956 the oil and gas industry spent $5 million (a huge amount 60 years ago) to try and get special lowered taxes.

In 1958 corporations got together to sponsor the union-busting "right to work" initiative

In 1963 the movie theater owners got a bill passed banning cable TV via initiatve

On the other hand, we have the County of Maui where citizens frustrated with no action on the part of elected officials (many of whom take money from the chemical companies) passed the GMO Moratorium.

So I guess there is something to be said for the initiative process in these days of Citizens United where only a minority of legislators represent the people rather than their big donors.