Thank you for detailing the value proposition of liquid democracy! I worked on Participatory Budgeting, an implementation of direct/participatory democracy for a few years, in particular on designing and implementing digital voting methods and interfaces used in the process.
From that vantage point, I think there is certainly a ways to go in terms of adoption and software readyness for a digital voting process, and authentication — are you who you say you are when you vote? There is national centralized voter database that has EVERYONE (and please no one make one!) to authenticate digital voting in the US as there is in the EU with their health care #s or city registration #s (Paris). If Ethereum/blockchain can solve the authentication issue then that certainly will move the project forward.
For me, the biggest challenge is inclusion and buy-in by design: ensuring that anyone who should and wants to, can participate. Our current democracy is deeply flawed in that regards as well, and it’s the various innovations like this which are floating up that give me a ton of hope that this may be a solvable problem.