I don't think cyber-libertarianism is incompatible with direct or representative democracy. It's probably fair to say that the structure of government takes a back seat to certain expectations about what a "free" person may do in the internet age.
I also agree that cyber-libertarians would not support restrictive government regulation. But it would also not support restrictive corporate control. Effectively, it recognizes new interpretations of the rights to assembly, privacy, property, and speech (and perhaps others). I don't see how that's incompatible with "the right of people to act collectively through government". It just clarifies the implicit stipulation: "as long as natural rights are respected".
Correct. That's why it's ultimately anti-democratic and not at all attempting to adopt leftist ideals (other than maybe social freedom). Note I said "direct power" not "direct democracy" which tends to be confusing to observers.
