Likewise, I agree with you that democracy never really lived. I think it is impossible for humans to form a truly democratic government/country as long as humans do not change some core aspects of themselves. (ie. greed, desire to be better than others). I also realize that human beings have evolved to become this way (don't start a evolution/creation dispute on this one please, they are just my thoughts ), but until we evolve to rid ourselves of certain feelings/traits, I don't think we can form a true democracy.
Now, I can't comment on UK matters because I don't really know about them too well. But for here in the USA, I think that democracy goes through shifts, its ups and its downs. Sometimes there is more democracy (as in the recall of Governor Gray Davis in CA), and sometimes there is less (too many to list here). Some presidental/congressional terms bring more democracy to the respective people, some less, but the point is that there is never true democracy. It may get closer, but never reaches it, and has never reached it. Something like a limit (in math).