I beg to differ. The Lost World is in no way tyrannical as we always refer to our membership for any decision. Our system might not be efficient, however our membership gets a say in politics and who we should be making treaties with.
You point out that a democracy is made of mediocrity based on one or two cons. Democracy might be slow in the ways of decision making, however the decisions made are thoroughly investigated in debates. If you propose a Monarchy or a dictatorship, the decisions are made almost instantly with no regards to what might go wrong. Democracy is a fair system of government which incorporates everyone's opinion and takes into account everyone when making a decision. The process might be slower, but in the end, the results might turn out better.
I also would like to point out the fact that no government is perfect, that includes a democracy, however every alliance has a government that works best. It all depends on the members and whether they agree on who is governing them.