That's a good way of looking at it; as I described elsewhere, it can be seen simultaneously as a dictatorship and a representative democracy. The players don't have much control over the game itself, but they have a lot of control over on what terms they chose to play it.
I'd question whether "they don't have much control over the game itself" was really true, personally. I think that's something that is very specific to the group and DM and so on. In more sandbox-style games, the players tend to exercise absolutely vast control over the game itself, in terms of what the game is about, what areas get focused on, and so on - they exercise considerably more control than the DM, in that sense, because if they don't want to go into the horrible dungeon of terror, and instead want to spend their time exploring overland, or setting up and guarding trade caravans, or whatever, then that is what the game is about - no matter than the DM spent days designing the horrible dungeon of terror.
On the flipside, if the players are keen to follow the DM's plot threads, and keen to be lead (as many are), in a more linear-narrative-style of game, then the DM has huge control over the focus of the game, it's themes, and so on.
Regarding the whole "DM can override anything" deal - this is problematic generally when the DM decides to override things in order to force the PCs into something that the players weren't interested in, or that wasn't a natural/logical outcome of the situation they were in.
Personally I think that, talking of DM advice the whole "You can override the rules!" bit should be kind of the last thing DMs learn - not "Rule 0", not introduced immediately, but "The Final Rule", after they've mastered all the basics, learned what they SHOULD be doing. Also, I really feel like it should be accompanied with more of a stern "With great power comes great responsibility!" speech. Because, really, it does!
(I say this particularly because virtually every abuse of "BECAUSE I'M THE DM, THAT'S WHY!", including my own, has come down to the DM being somewhat juvenile/emotional, and putting their personal desires ahead of what works for the game, or what the group clearly sees as right - for example, refusing to let a favourite NPC die (or even
appear to die, after all, in D&D, dead isn't dead!) despite the dice saying it is so, or introducing bullying GMPCs to push the PCs on to the path the DM wants, because he is frustrated with the tack they are taking, etc. etc.)