Even though Livy is saying that his mission is to look back and view the morals of the roman people, I think its important to note how much grotesqueness he finds in the founding of Roman. Civil war (Romulus v Remeus) violent expansion (the rape of the sabines) and religion as a means of control (Numa) are all part of the founding. Livy is remarkably critical of the Roman legend in these early books.
The problem with passing on the "old teachings" and this is why history repeats itself. Some lessons are impossible to teach. Like someone who has not had any food for a week that person trying to teach the importance of always having can goods to a person that has eaten fast food their entire life.
The Roman Republic was not "representitive" it was very aristocratic. The popular assembly and the tribunes of the plebs certainly have some power as describe by Livy and Polybius but their roles are not very strict or elaborated on aside from the tribunes, and we see in the late republican era how those became another tool by which senatorial factions fought their battles.
Livy is stating that the roman character has collapsed, but he is also living at the dawn of the Empire. The empire lasts for more than 400 years! bit of a long time to the system to collapse.
