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ArnoldRimmer said:
But if this is so obvious, why is hardly anyone ever doubting that we are living in democracies?

I mean, If I were to go on the streets and ask people what political system we factually have, I guess 90% would say democracy, not oligarchy.

Is this some kind of "the emperor's new clothes" situation? People saying "politically correct" things despite knowing better?

How many people even know the word oligarchy? Depressingly few, I bet. I don't think many people analyze the situation beyond, "I'm allowed to vote, so I live in a democracy." At least as long as they still have their bread and circuses corn and porn, that's a good enough working definition for most.