It's a distinction without difference these days as you seem to note. Who gets "hooked up" with loans, freebies, nobids, monopoly pricing, monopoly access, looking the other way (classic is cartel money laundered in largest banks and BP) is the rich and powerful. Almost all of todays 2000pp bills are grants of discretion, all you need know about them is whom they empower and dis-empower and they tilt one direction.
Tea Party seems to follow the axiom of power corrupts and wants to remove power. I'm not sure this is the way to go over informed voters and accountability but it may be since people are more concerned about American Idol than SBA loans (or lack thereof)
What is 'removing power'? There's no such thing, only moving it. And the rich would benefit most in terms of their own power the more the government is weakened.
While their influencing who is elected for government to serve them is good for them too, there's the power the people have to vote otherwise, as with FDR,for example.
But permanently weaken government and they're home free for oligarchy.
People don't know what tyranny is until that happens.
The rich would like to see government turned into a powerless ceremonial thing as far as the people's rights - it could grant honors, pass symbolic holidays, name the national bird.
But when it comes to reigning in the rich, forget it.
Look at NAFTA as a model, where it said that there's a private board to resolve any trade issues, not appointed by any elected officials, who is secret and not subject to appeal.
Governments are told that while technically their power to pass regulations can't be removed now, if they do so, they can be ordered to pay all lost profits to all companies, if the private board decided the regulation was 'unjustified'. So forget the democratic process to decide regulations, the private business community can effectively veto any if they don't like them.
It's pretty simple - stop letting the rich get government that represents them, by removing the way they mainly do it by using the money they have to decide elections.
In CA in our two statewide races, we have two billionare right-wing figures who are spending a fortune on the media to demonize their good opponents, and who are running even in a blue state when they shouldn't be (recently, Meg Whitman spent 85 to 1 over former Governor Jerry Brown in campaign ads). We threw out a good governor for Arnold Schwarzeneggar before that, because the public couldn't figure out that the old governor was the *opponent* to Enron, and Schwarzeneggar their ally.
The pick of Bush over Gore (almost) says what needs be said about the way the current system is not doing too well, but the answer isn't to weaken democratic government.