Democracy without raising the sanity waterline first is pretty much as useless a form of government as any other we've had so far. It's not really much in the way of "progress". In fact, I'd wager to say that no form of government can be that great without a decent baseline sanity level.
This is what has been attempted by the Ferry laws in France. The high rates of atheists and agnostics in France are a consequence of these laws, which made education mandatory and reduced the influence of the Catholic church on education.
However, I do not think it raised the sanity line in other domains, and it had bizarre effects, such as an important part of the population which say they belong to a religion but do not believe in any god.
I often hear people speak of democracy as the next, or the final, inevitable stage of human social development. Its inevitability is usually justified not by describing power relations that result in democracy being a stable attractor, but in terms of morality - democracy is more "enlightened". I don't see any inevitability to it - China and the Soviet Union manage(d) to maintain large, technologically-advanced nations for a long time without it - but suppose, for the sake of argument, that democracy is the inevitable next stage of human progress.
The May 18 2012 issue of Science has an article on p. 844, "Ancestral hierarchy and conflict", by Christopher Boehm, which, among other things, describes the changes over time of equality among male hominids. If we add its timeline to recent human history, then here is the history of democracy over time in the evolutionary line leading to humans:
There are two points to observe in this data:
I do believe "progress" is a meaningful term. But there isn't some cosmic niceness built into the universe that makes everything improve monotonically along every dimension at once.