I now read a bit about Liechtenstein. "Liechtenstein is slightly more direct in its democracy than Switzerland." is probably not correct.

Comparison:

In Liechtenstein the people can propose laws and enact laws. But the monarch gets to say if they are accepted or not.

In Switzerland people can enforce an optional referendum to challenge any law that passed the parliament. Also there are popular initiatives to write a new law into constitution. In both of them noone is above the people. So the only difference seems to me, that Liechtenstein has a Monarch with a veto, where Switzerland has the people with a veto.

In general Switzerland is a strongly federated state. So everything a county can handle is managed by it. When not they can pass sovereignity a level up to the canton. Same for the canton and only a very small part is then to organize by the national state.