I imagine you've never really engaged in political philosophy very thoroughly?
The opposite, I grudgingly came to this conclusion after decades of believing (or I guess, hoping) differently. Not that it's an original conclusion, many philosophers called it out long before I was even born. Took me awhile to see it.
When you say "we are stuck relying on the intelligence and wisdom of the masses" you're making a pro-elitism argument. In that the masses ought to be ruled by people better than the masses
Yes, and again I always hoped this not to be the case. But the reality is the majority of people either can't be bothered to think logically or simply aren't capable.
So in short, I think you should probably read a little more about political philosophy to be able to say something as big as "Democracy is incompatible with freedom". It's a pretty big statement.
It's the only logical conclusion though. Government only grows. And with that growth comes more and more taxation to fuel the growth and more and more laws/restrictions/regulations on individual freedoms to justify the growth.