While I am not Ann Coulter, I can answer your question: Article IV, section 4 of the United States Constitution guarantees to the states a republican form of government. What these two morons are proposing would turn us into a vile and dangerous democracy, which we are not and never have been. The word 'democracy' is never mentioned in the Declaration of Independence or the Constitution, and our Founding Fathers stated quite plainly that it would be a direct threat to our liberty. The article linked to Walter Williams' name on Drudge discusses this.
You hit the nail on the head. "Democracy" is nothing more than a decision-making process. It is not a form of government. And I am quite pleased with the federal republic that we have. We have thrived for over 200 years with this form of government. What makes these clowns think that elimination of the EC would "improve" our form of government. If it ain't broke don't fix it.