I understand what you're saying, although my criticism of the right on that issue is slightly different. This is because I've noted an inconsistency in their position on "government." They only really have a problem with the federal government having power, yet they don't seem to mind if the state government has even more power. For example, here in Arizona, a lot of people complain when the Feds interfere in state-level politics, although they don't have a problem when state government interferes in county and municipal governments.
Funny thing is, if state governments could learn to limit and restrain themselves, there wouldn't need to be any federal interference to come in and restrain them at all.
I'm all for the idea of local autonomy and that the people in a given jurisdiction should have some measure of self-rule and self-determination. But I don't support "states' rights" when it's interpreted as allowing state governments to act like petty dictatorships or police states.
It's not really that scary when you put it like that, but it's a representative democracy. And sometimes, those who do the representing leave much to be desired. Then, there's a lot of government posts which are appointed, not elected. Then, we also have one of the largest war machines in the world, with about 1.2 million active duty personnel - not to mention our intelligence community. There's also federal, state, and local law enforcement personnel which number over a million. And they're also somewhat "militarized" in terms of the training and equipment they're getting these days.
In some ways, it is kind of scary, not so much because of what the government is right now, but what it could potentially become if just a few things fell out of place. We supposedly have a system of checks and balances, but it sometimes seems a very delicate and precarious balance. A government "of the people" is fine, as long as the people remain vigilant and wise.
It all depends on the quality of the people. If the people are intelligent, educated, wise, courageous, vigilant, thoughtful, have common sense, and give consideration to the best interests of our country and the rights of its citizenry, then a government of the people can work quite well.
Unfortunately, there are many who say that the electorate has turned stupid (or maybe they never were really smart). Some believe that they are easily led by propaganda, political manipulation, pandering. Some even call them "sheeple," as they don't seem to formulate any views on their own; they just rely upon what is spoon-fed to them by the media. This feeds into the perception that the voters are being tricked and duped into supporting political factions and politicians who may not have the people's best interests at heart.
I don't think it's that we've lost faith in democracy, but we've lost faith in ourselves. Truth be told, I think more Americans are scared of each other than they are of the government.