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The lower chamber of parliament that votes on the regulation is directly elected and can rewrite and amend proposals. The higher chamber (EU Council) is comprised from government (or state?) heads which are either directly of indirectly elected with a length of 1. The commission (executive branch) that drafts the laws that are amended and passed by the parliament is voted in by a parliament which is directly elected.

Where do you get 4th level of deriviation exactly?

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It's even less direct than national parliaments, which already are a joke.

And the unelected bureucracy, careerists, and 2-3 big country interests pressuring others under the table, are driving the show...

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It’s just as direct as national parliaments. Citizens vote for MEPs.
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Sure.
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Not sure what other mechanism would be possible for creating a rule system like the DMA presuming that the EU countries remain independent. Treaties are too slow, and direct democracy on an issue this complicated is the realm of science fiction (see Alastair Reynolds' Revelation Space universe for a take on this -- particularly the Demarchist faction).
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Voting the world over is a joke. IIRC it was Carlin who said “if voting mattered they wouldn’t met us do it”.
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Carlin was excellent at delivery, but don't confuse clever delivery with wisdom.
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People the world over: (die for the right to vote)

One comedian: LOL they only killed them to make you think it was valuable.

The Internet: (sagely) What a wise assessment by a wise man of wisdom.

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