It seems like a valid distinction, but I do not agree with it.
If what you are doing does not bother the government you may be able to say "see, it is not that bad, they are not telling me what to do in the totality of social, economic and political life"; if, on the other side, you do something they disagree with, the distinction between totalitarism and non-democracy disappears.
In other words, to me the difference between being able to control and attempt to control are not that different. If it is possible, eventually somebody will attempt it. This is where checks and controls, division of power, etc. are useful.
If what you are doing does not bother the government you may be able to say "see, it is not that bad, they are not telling me what to do in the totality of social, economic and political life"; if, on the other side, you do something they disagree with, the distinction between totalitarism and non-democracy disappears.
In other words, to me the difference between being able to control and attempt to control are not that different. If it is possible, eventually somebody will attempt it. This is where checks and controls, division of power, etc. are useful.