Of course democracy is a dictatorship. If it's working well it's a dictatorship by the majority of citizens.

If you aren't in the majority democracy could be not so rosy, but from a utilitarian point of view is far better than dictatorship by the kleptocracy. A kleptocracy is what Russia / N.Korea and meany 3rd world countries have.

But the West isn't either of those. People in the West tend to manage themselves using a democractic dictatorship whose dictators have decided to ceed a great deal of their powers to laws and judges. Mostly that power is about adjudicating property disputes, because the power they ceed is mostly the ability to seize property and labour. In a capitalist economy those things are exchanged freely between individuals so the democratic dictators get almost no say. This system is occasionally called "rule of law".

Capitalism has its failure modes too - a total monopoly is a dictatorship, a dictatorship of far fewer than a democracy or your average kleptocracy. So the West is a democracy that manages a capitalist economy, steering it away from that failure mode.

I'd say that's the best system mankind has invented so far. I expect China would disagree. They have a different different sort of system that manages a capitalist economy. While I think they are wrong which one is best, it's probably fair to say the jury is still out.