Interesting theory. It does appear to be incredibly naive at times when taken literally. Although there are some rather matter of fact conversations about the progression of political regimes to the point of tyranny, i.e., the post-democratic degenerate phase... which reads as a prophesy to me personally in these times.
Additionally, the society he's attempting to explore is a society in which justice is the single overriding principle. I think if there is anything to take away from that, it's that such a society maybe isn't so great.
His critique of democracy does absolutely have a few good points. A lot of people get really mad when they see it, but I don't think that is at all constructive. If democracy is a good idea, it must stand on its own legs. We can't counter its criticism with what it promises to deliver, but only the reality of what it delivers. Denying or attempting to conceal its problems makes addressing them that much harder, and which problems are easier to fix after having festered for a long time?
At the same time, I think the very Athenian democracy he criticized solved many of our problems today. Athenian officials had real skin in the game in a way ours do not. They risked ostracism (10 years of exile) if they misbehaved.
People get mad because its a concept they have faith in, have been indoctrinated to believe, and they also depend on it to keep political chaos at bay. You can't just pull the ideological rug out from under them, for they will fall--into the abyss. We aren't dealing with pure concepts here, but ideas that have life attached to them. Some ideas are preserved simply to preserve the life bound to them.
I'm afraid this is all a moot point because democracy has already disappeared in the U.S.. We're a democracy in name only. Hopefully we don't go the way of the DINOsaurs.
Totally agree with your other statement.