Thoreau on Democracy as a Theory of Government

"Is a democracy, such as we know it, the last improvement possible in government? Is it not possible to take a step further towards recognizing and organizing the rights of man? There will never be a really free and enlightened State until the State comes to recognize the individual as a higher and independent power, from which all its own power and authority are derived, and treats him accordingly. I please myself with imagining a State at least which can afford to be just to all men, and to treat the individual with respect as a neighbor; which even would not think it inconsistent with its own repose if a few were to live aloof from it, not meddling with it, nor embraced by it, who fulfilled all the duties of neighbors and fellow-men. A State which bore this kind of fruit, and suffered it to drop off as fast as it ripened, would prepare the way for a still more perfect and glorious State, which also I have imagined, but not yet anywhere seen." - Civil Disobedience, 1849

Here are the questions that this quotation poses to me:
- Is democracy the best possible form of government? 
- If democracy is not the best possible form of government, do we have an inkling of what is? 
- Moreover, can government "work" at all?


Feel free to leave your answer via the comments section. I look forward to hearing your thoughts.