Alas, people will continue to argues that democracy is the best form of government despite its various flaws.
What's your alternative good?
Democracy with limited and enumerated state powers is actually kinda okay.
For example, we could start interpreting the commerce clause the way any reasonable and sane person would. That would go a long way toward fixing this sort of problem, by making us less of a pure democracy.
In the last couple of years, I've encountered well-reasoned opposing views for the first time.
Let's back up, and consider how to get an effective x, where x is a cup of coffee or a laptop or anything else. One way might be to get everyone to vote on what kind of x they like, and then give that to everyone. This is of course a terrible system, and not Starbucks nor Apple have that kind of system.
Much better to have competition. I'd be terrible at making coffee or a laptop, and it's best that I'm not trusted to make those things, or to choose who would be good at making them. Nor ought I to be trusted with running a country or choosing who to run it.
So, I think an ideal world might be a world of many smaller governments, each competing for consumers/citizens. Apply the creativity and efficiency of startups to the governing industry. I want a world of Singapores and Hong Kongs and Liechtensteins, where I can pick my government provider approximately the same way I pick my ISP or my employer.
Of course there are problems. So solve them! What better decrepit, corrupt, monopolizing old industry to fix than the governing industry? A Peter Thiel-funded startup is trying (http://seasteading.org).
See also Arnold Kling on competitive government vs. democracy: http://smartdemocracy.com/papers/kling_competitive_governmen...
And also see the reading list at the Let A Thousand Nations Bloom blog: http://athousandnations.com/recommended/
Really, I think that there is no such thing as a perfect government, only a perfect citizenry, because the power of a government is always derived from the people within it. A philosopher king would not be able to maintain power unless either A) he was omnipotent or B) the people allowed him to remain in power.
I think we all want to be one world with no border without any government whatsoever. It is unfortunate however that a government is needed.
Personally, I favour Aristocracy combined with some form of accountability to the people. Thus a combination of Aristocracy and democracy.
False dichotomies are the sceptre of the philosopher king‽
In one way, the system I've proposed has an inherent protection against this problem that our current system doesn't have. Specifically, because all candidates are chosen by random lottery, an incumbent cannot run for a second term except in the exceedingly rare circumstance that they are chosen twice in a row by the lottery. Therefore, the incumbent has no incentive to try to please any third party that helped them get elected in order to retain their support for a re-election campaign.
However, suppose for a moment that you're the revolutionary leader of a small nation in Latin America and, after a long struggle, you have risen victorious over the oppressive old regime of your country and there is overwhelming public support for you to become dictator. But, being aware of the inherent long term problems of dictatorships, you don't want to be a dictator. So, you declare, "We will implement a constitutional republic like the Americans. But, to ensure our government always has the best interests of our people at heart and we are never again dominated by an elite ruling class, we will choose our representatives in the legislature by a lottery like the American PowerBall." What, then, would be impractical about implementing a jury duty system of democratic representation?
Beyond that, you run into the problem of lobbyists. Not the evil type that is a stand-in for the word "corruption", but instead the legitimate "education" type lobbyists. You lose much of the institutional knowledge that prevents candy coated views of the world from taking hold. Honestly, how many of the randomly selected people are going to understand the trade-offs of each and every policy, be it economic, societal, political, industrial, trade, environmental, etc. Having experienced people who have been around a few cycles provides a base level of knowledge.
As Symmetry points out, it is from a speech (to the House of Commons) in 1947, after Churchill's first tenure as Prime Minister.
tl;dr: the quote itself isn't bad, it just has been coopted by those with a certain fanatic mindest.
I think democracy is necessary - but not sufficient - to maintain stability in the state and moderation in the laws. The cultural problem we face today is that the popular perception of democracy has shifted from seeing it as a mechanism by which the public can protect itself against the abuse of power to seeing it as a legitimizing factor for the assertion of power; institutions are criticized for being "undemocratic" on the latter basis, targeted for reform, and the end result is that our laws become increasingly unbalanced and excessive.