The main flaw with democracy seems to be the elections themselves. I'll let that sink in for a while.
Remember that most serious problems today in all countries, be it poverty, lack of infrastructure, government deficit, medical system, energy security or even killing Osama etc. will take an entire generation or more to realize a reasonable solution. Also, appreciate that holding a political office means that you got just 4 or 5 years to prove that you are good enough. A couple of years is usually spent in understanding how to work the system and the rest of the time is spent in planning how to stay in power. So, in the spare time they get to do any kind of actual legislation, (a majority of) they have to concentrate on the short-term "resume points" like social issues (ex: religious sentiments etc.) that make people feel good instantly. See? The system leaves little time for addressing long-term problems and solutions because the elections are always round the corner.
Of course, letting a human hold an office for too long is never an option as our minds can't handle too much power just as our bodies can't handle too much alcohol - just not designed for that. Besides, how hurtful would it be that someone else will walk away with the trophy for the hard-work you have done - no, not designed for that either. Hence, don't ever make the mistake of assuming that any long-term change is happening because of any kind of serious political planning. There is just no free-will. Change will happen when influential technology / art can make us better species and more in sync with the ecosystems we inherit and pass on. Of course, it is imperative that the business people feel comfortable and approve any direction our species might take.