I used to think this way also but in recent times I have become less sure. Maybe the easiest way to explain my thinking is to recall that line from the movie Men in Black: "A person is smart. People are dumb, panicky animals, and you know it."
Obviously the truth is way more complex than that but I really do doubt the wisdom of the crowds.
A different example might the guys who wrote up the Constitution of the United States. More people were illiterate than literate back in those days. The founders were a small elite, but they created a framework that has served millions of people for a few hundred years.
In any case, yes, democracy is nuanced. It is the best system despite its flaws. And to be frank, the real issue with democracy is that it's run by people...and hardly any of us walk on water. :)
> So when we look at "the people" and say this or that is "what they want", something recoils inside me. Do we know that?
The famous (controversial) Indian teacher Osho had a saying on this: "Democracy. Government of the people, by the people, for the people...but the people are retarded."