I'm much more interested in the question of democracy's morality per se, given baseline human nature, than its "efficiency" or costs in a given historical environment (not meaning the intristic goodness of some abstract "eidos of Democracy", just whether it should be Sacred, like other "moral essentials", or not).
Unfortunately, I don't (yet) even have a remote inkling of an answer; my intuition, of course, is that ruling people without meaningful group consent is very ugly in itself, and "manufacturing consent" too directly is paperclipping, but I'm honestly trying to reflect on the matter according to my entire breadth of view.
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.