In short, Philip, I can only tell you once again: make a democratic and fair world with processes that can lead to governance for a wide variety of constituencies with different needs.
Frankly this was the "proverbial last straw" Sparky. I've been wrong to dismiss the concept. I mean if you think it's important then I have to address this "democracy issue".
I have a problem though with the word democracy here - well I have a lot of problems. First of all you only want "a wide variety of constituencies with different needs" to be included. I'm hurt. Surely equality for all would include all constituencies.
There are various models for democracy - the extreme direct approach would have everybody in Second Life voting on every decision. That's probably workable but only if you have a lot of time to kill. Getting things done would not be a priority.
We could always elect representatives. How and how many would be a couple of sticking points. I suspect identifying population groups to be represented (in terms of geography, culture, language, avatar, etc.) would prove contentious at the very least. I'm sure you have a solution Sparky, you just failed to mention it.
Another option would be to have self appointed representatives. The ones who yell the loudest would be the best I suppose. They've even been known to use the word "we" when making demands or offering opinions - they're practicing for the real thing.
Now let's discuss governance. I have to start by wondering if you were using "governance" in the correct sense or if you were using it in place of the word "government" which many do. Of course the fact that you coupled it with "democratic" would lead me to believe you mean "government" but since that is patently absurd (Second Life is not an independent country. It is a corporation subject to the laws of the various real countries in which it operates.) I'll assume you really do mean governance - in the corporate governance sense since we're talking about a private company.
Electing representatives to be involved in corporate governance is something Trade Unions and Cooperatives have used for a long time. You probably got the idea from them.
Being residents/consumers/customers whatever you wish to call us, our input could only be on an advisory level. Unlike the Board, employees or shareholders we would have no responsibility and, therefore, no authority. Well that's a legitimate part of a corporate governance team but somehow I don't think that's what you want.
What you want Sparky, I suspect, is for Linden Labs to do things your way. Democracy in your case is composed of one vote - yours. I'm convinced that in any other form of a voting system you might be in the minority and that can't possibly be in your best interests.
In spite of your obvious superior intellectual abilities having you dictate LL policies and actions could be a tough sell. So I have a suggestion to make.
You are in charge of a large amount of land and you have tenants/residents on that land. Implement a "fair and democratic" system in your domain with processes that lead to governance for all of its constituencies and all of their needs. Then you can use that model to demonstrate to the rest of us how ideal and workable your system is.
We'll vote on it.