You nailed the social aspect in your second paragraph but you didn't take into account the economics when you called Switzerland's system similar to Libertarian socialism. Libertarian socialism is the extreme left side of democratic socialism. The comparison that you made in your second paragraph should be between libertarian socialism and democratic socialism. Switzerland is considered a mixed economy that incorporates both social democracy and free-market capitalism. Due to this, Switzerland can never be considered socialist hence social democracy is the more appropriate term. In fact, there isn't a single highly developed economy in Europe that doesn't have a free market hence none of them can be considered a libertarian socialist country. Switzerland isn't the only country in Europe that has this kind of democracy. Norway is another country like this and contrary to popular belief Norway is not socialist in fact, it is one of the freest economies in all of Europe. Norway too is more of a social democracy; although, mixed economy is the most appropriate term for both Switzerland and Norway but this term is too vague.There is currently no country practicing libertarian socialism, and the closest one is the example you gave Switzerland where even the smallest decision must be made with the majority approval of the electorate.
Libertarian socialism is not the same as social democracy, because it's not just a matter of democratic norms, but social norms that emphasize libertarian ideas such as individual rights that must not be infringed upon. Not all socialists that espouse social democracies believe this, and do make a number of exceptions. Where as other socialists think 'what's good for society is good for the individual, and the government must do everything to help society succeed', libertarian socialists reject this notion by believing in the reverse 'what's good for the individual is good for society and the government must do everything to help the individual succeed'.