Well, to your original question about democracy being well balanced, then you're right in wondering if it is because it is not. The biggest failings in democracy are that 1, it inspires a huge level of competition between people while not also inspiring people to help those who aren't as successful. Thus creating a two-tier system with the rich on one end and the poor on the other. This in turn creates strife between the them due to jealeosy and is what causes crime and disruptions to the flow of the system. The second major failing in democracy is that it quite bluntly requires major decisions to be made by stupid people. By stupid people I refer to those who are either just not very intelligent (should be picking fleas off each others backs and learning the art of banana peeling), are just badly informed of the issues at hand (never watches the news or reads a paper and simply votes one way or the other due to party affiliation), or finally are just bull headed ignorant of the facts (the KKK for example).
Despite these problems democracy still remains a better system in action then communism, despite the opposite being true on paper.
The biggest problems with communism, especially in being applied to America is that for starters, Americans have their entire life been taught to hate and to actively wipe out communism because its the scary red political demon from the east bloc, blah blah blah. America is the only country in the world that in its own constitution allows for its own destruction by the people should they become highly displeased with its workings. So most citizens would never allow it and you would have open rebellion leading the US government to the traditional communist answer of military oppression. If you think the US has it bad with middle eastern terrorism then you haven't seen anything yet.
The next major failing of communism is that its blatently corrupt. Until people learn to give up their inherant greed and work for each other, communism is destined to fail at each application as it already has.
After this its other big problem is that it doesn't inspire or reward people for development and scientific advancement, unless its something the government specifically wants. This means social programs, medical research, public works, and other things get left to be in archaic condition. If two guys work the same job and one works his ass off while the other sleeps and gets drunk on the job and they both get the same pay no matter what then it leaves little inspiration for the guy who does his best.
With all these various problems it leaves democracy as the better system at the moment. While I have considered the idea of cross breeding the two of them before I think you'd end up with something similar to what Canada has right now in it federal government. A situation where no one likes them except a few areas that are basically bribed with party funds to maintain control and a leader and party thats being brought up on a new corruption charge every other day. Not very perky to say the least.
