For a system to be really democratic it should at least have the essential elements:
the essential elements of constitutional government--majority rule coupled with individual and minority rights, and the rule of law
Without that any system could be labeled democratic, even the one of North Korea, but that would be nothing more than a meaningless label.
Democracy is not perfect and there is no perfect democratic system. Democracy is just the best from all other systems. How good a democratic system is depends on each system. Not all democratic systems are equally democratic.
For example the system in the USA is formed in such a way that it makes it extremely difficult for anybody other than a Republican or Democrat to become the president. For that to happen the candidate should be billionaire, and even then it will be extremely difficult.
In other countries they have systems were the required % to get a seat in the parliament is very high, 10% for example. In this case you can have several "small" parties that all together could add to more than 50% of the votes and yet they would not get a single seat in the parliament. Something like that happens in Turkey.
In Greece I remember that until some years ago each Government was changing the election law a bit before the elections in the way that they believed would suit them better!
What I want for Cyprus is the most democratic system possible. For me best elections system would be:
1) President elected directly by the people and every vote to count (unlike the USA that you can get less votes and in some weird way become the president).
2) That each party will get a proportional amount of parliament seats based on the votes the party received. (e.g. 5% votes = 5% of seats, 2% votes = 2% of seats, 35% votes = 35% of seats etc)
But democracy should go beyond the elections system, and if we could finally agree that democracy is what we all want, then we could discuss ways that citizens could participate more effectively in the decision making (not just once every 4-5 years) and how we could better monitor what our government does. I think that fully utilizing the internet for these purposes could make a country much more democratic, and especially for Cyprus with less than one million people, we could even have a representative democracy that is as close to direct democracy as possible.
Therefore, democracy is not perfect, but it is up to us to make it as good as possible. The fact that out there there are not so good democracies and "democracies", doesn't mean that we should have a system other than democracy, or try to compete with some of those "democracies" for the worst "democracy" ever created.