Even if it was a democracy, the problems with it wouldn't automatically be fixed.
People talk about democracy as if it was some magic pixie dust that makes everything better. But democracies have their own problems, and in order for them to work at their best they have to have the participation of an educated, well-informed, engaged elecotrate, among a host of other things. Needless to say, Wikipedia does not have that. And even if it did, its problems still wouldn't automatically be solved because even working democracies can make mistakes.
I'm not saying I have the answer or know of a perfect system of government (for Wikipedia or anything else), but democracy isn't automatically the answer.