Part of it is the socioeconomics of Russia. Russian people care more about being perceived as strong than they do about their economy. The exchange rate for the Ruble is horrible, their economy is doing poorly, yet he still has pretty high approval ratings (if you believe them). What he has given Russia is the appearance of strength in their actions in Syria and their stance on US intervention, which to them matters significantly. Russia wants to be respected and feared more than anything else. That said- he is definitely a dictator. He is notorious for silencing his political rivals, and he isn't exactly a human rights champion. Many people who do oppose him or have suffered under his rule go largely unheard.
