The problem Putin has right now is that there is no one on the current Russian political scene, or even on the horizon, that is competent to wield this much power as successfully and as competently as Putin has (a structure that was put in place under Yeltsin, I might add).
Putin realizes that if Russia is to survive and thrive after he is gone, the system must be improved in order to prevent another disaster like Yeltsin (or worse) from taking the reins. The people are depending on him for this, and he is delivering.
I generally think that idea of Putin as an autocrat is quite laughable. Russian leaders historically are more speakers and diplomats trying to figure out and act according to public opinion and to balance interests of different opposing groups. Putin is rather good at it and that is a reason of his popularity.