Although I think it is fucking hysterical that not a week after she says this, she gets caught writing speech notes on her hand. How can people take her seriously?!
I wrote notes on my hands to pass tests in school. Newscasters and Politicians read off teleprompters. Palins problem isn´t that she´s completely stupid, but that she´s grossly unread, self deluded, somewhat untalented as a public person and in my humble opinion set on pushing the wrong political goals.
As for democracies, by now I feel its basically all hubris. Think about it. The people you get to elect need money to advertise themselves, especially in the US. The politicians need sponsors, and the sponsors won´t just hand them money and say "go what you like or what the populace wants." The most powerful sponsors are big companies, and big companies have no ethics by default. (They can´t have because more often than not good ethics run against the purpose of the company, which is to expand and generate profit.)
And if you let that get out of hand you get monstrosities like the EU, where the politicians the people elect have no actual powers, and merely serve as a consulting body to the actual government, which is selected in in-governmental elections.
I would take Palin seriously. If you don´t, she´ll slip right past you and into presidential office, and that will stifle the laughter she´ll have generated up to that point.