I don't know what your point is or how it relates to the movie, but it sounds to me like you're splitting political science hairs.
If this were a political science college course you'd be absolutely correct, we are not a true democracy, we are a representative republic with a central federal goverment - made up of three co-equal branches - overseeing a collection of individual states, each with their own governments.
Nowadays, however, "democracy" is informal shorthand used by many for a democratic society, which can come in the form of a true democracy, republic, a constitutional monarchy (like England), or any number of permutations found in the world. Generally speaking, democratic societies not only give their populations electoral power to choose their elected leaders but also give them guaranteed rights and liberties.
So your point is moot if you're trying to split hairs regarding this movie's use of the word.
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