Here's one definition:
1b : a government in which the supreme power is vested in the people and exercised by them directly or indirectly through a system of representation usually involving periodically held free elections
That definition refers not just to elections, but to
free elections. Are elections free when people can be locked up for opposing the state's official ideology? You could look up the meaning of "free," and that would result in a multitude of alternatives to plug into the definition above. In the sense of democracy I think important, free elections require freedom of belief, speech, and association. Here's another definition:
5: the absence of hereditary or arbitrary class distinctions or privileges
But what if the vast majority of people, being Muslim,
want a legal distinction between those who remain faithful to Islam, and those who leave it? Then, democracy in one sense ("rule of the majority") conflicts with democracy in another sense ("absence of arbitrary class distinctions").
That's not a linguistic mistake. That happens often with words. Because definitions are nothing more than how we use words, and because the purpose of a dictionary is to document that usage, it would be the height of stupidity to argue over which definition is "right." The word "democracy" has a range of meaning. As long as they keep context in mind, people are perfectly able to make sense of sentences such as this one: "The will of the people expressed through a democratic mechanism produced a non-democratic result."
All of the definitions for democracy above came from here:
http://www.m-w.com/dictionary/democracy