@Invictus, it is incredibly ironic for you to bring up Hamilton and the Federalist Papers in support of democracy, seeing as Hamilton was a monarchist and the Federalist Papers were his propaganda campaign to get people to buy into a strong and centralized federal government, including a president with (in the view of the time) monarchical powers. Hamilton was trying to suggest in the papers that a strong central government would never become oppressive - but we can all see how that turned out. As for your and Hamilton's specific claim that a 'large electorate and population would prevent one group or faction from dominating', that has been specifically disproved with the example of California government workers dominating the state completely in the face of the largest statewide electorate in the United States (I don't think Hamilton believed half the stuff he wrote in the Papers - he was just a slimy used car salesman who would say anything to close the deal).
It is true that there are a great many people who *are* politically active, but if you do the math you will find that it's actually a very small percentage of the population. The biggest Tea Party in my area had something like 500 attendees, which sounds like a lot of people until you realize that there were about 600,000 people in a ten-mile radius. And for all the hundreds of thousands of people who turned out nationwide for the Tea Parties or anti-war protests in 2003, our elected government still completely ignored them.
And while I disagree with most of his policies, I actually like Obama - I think he's a sharp guy who is genuinely well intentioned and has the gravitas that has been sorely lacking of late from our presidents. But I don't think anyone can dispute that the only reason he won the election was because he's half black.
@PeteU - "of those who seriously propose the reduction of democracy, would you be happy to loose your say in who runs the country and which direction it goes?" - My answer to you is that I have about as much say in who runs my country and my state right now as I would in a monarchy. My vote for president is 1 in 100,000,000. My votes for congressman and state legislators are pointless because the districts are all gerrymandered in California to guarantee safe seats to all legislators and so huge (a California state senator allegedly represents over a million people) that again, one vote - or even ten thousand votes, for that matter - makes no difference. And our politicians know it; try calling a state legislator's office to complain about something in California and they'll just hang up on you. I spent three weekends last year canvassing my election precinct for Ron Paul; statistics say I influenced about 15-20 people to vote for him in the Republican primary last year - but that was still less than .00001% of the electorate. I'd much rather have a monarchy, where there are no illusions about me having any say-so in the system and the head of state has some political freedom of movement in not having to whore him or her self out to every politically connected campaign contributor and special interest.
And Belgium, Sweden, and the UK are all essentially democracies where the monarch is just a figurehead and all policy decisions are made by elected politicians. A palatable constitutional monarchy would be something like Liechtenstein where the monarch has very broad and real political authority over the elected parliament (and where there is a very very low tax burden).