Salaam/peace.
I think that Islam as a religion is a democratic religion in nature, because God/Allah Almighty in the Qur'an commands: 1) peace and only war in defense of oneself/his faith and his community, 2) no compulsion in faith, 3) equality between the sexes (only one biologically having some advantages over the other--not meaning to put the other sex down), etc.
Islam began with a fight for its right to co-exist with others in the world (starting with Prophet Abraham and the rejection he faced from unbelievers, the attempted attack on him, etc), because God Almighty in the Qur'an says that if He wished everyone in the world to be Muslim, it would be so, but He did not.
"You have your religion, I have mine," is one of the important prinicples of the Islam and one that some people may forget at times, but is extremely important because it is of a democratic nature. The statement translates into a picture of a secular community where one wants to live with others, but rightfully practice their own believes.
I think that Muslims are afraid of the 'democracy' as presented by the West, because the Western societies do not represent the most moral societies in the Muslims' eyes. And morality is one of the most important things about being a Muslim.
Looking at the humanity in general, any time we grasp too much freedom to do things we go into excess of doing them. The Western socieities are the most advanced in technology, medicine, sciences, but morally have declined: drug use, abortions, teen pregnancies, out of wedlock sexual encounters, sexual diseases, homosexuality, alcoholism, murders, etc.
I am not saying that some people in the Muslim communities are not just as bad, because I am sure there are people who have sex before/outside marriage, there are homosexual Muslims, there are rapes happening, etc. but with the eyes of Islam majority of the Muslims in the islamic communities do not condone these behaviors and these behaviors are less practiced because of rejections by the majority.
As an example: Muslim community in Bosnia, despite declining in its religious spirit during yugoslavian regimes, looked upon distastefully at 'living together thing' before marriage. Today, because suddenly it became 'modern' to do so after certain Bosnians have met the rest of the West and many are engaging in the pre-marriage situations and even having children in such a state. This is totally unislamic.
Muslims are not afraid to share knowledge, not afraid to learn new things in sciences, technology, offer help to advance humanity in various areas if possible, but we do not want the whole package of immorality (the way we see and understand it, no offense).
While Westerners view Islam to be restrictive, we view Western democracy to be too loose.
I think that certain people in the islamic countries are too rigorous in their practices of Islam that it comes to the point that some people, especially women who are not treated in accordance with Islam, are willing to shake the devil's hand than to stay in the situation they are in. Eventually, this may lead to great apostasy that was predicted long ago.