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If the original owner can choose whether or not they want to step down - or can reclaim their position at any time - then in my eyes that is not a democracy. You seem to think it would be, as long as the owner agreed to go along with what the people want. Does that pretty much sum it up?
I would say yes, because it's still a government by the people - it's still the citizens who have supreme power to choose who will rule them.
But if the ruler could choose whether or not they wanted to step down - or the original ruler could choose to take over whenever they felt like it - then obviously it would be the ruler who had the power. The ruler could choose to step down if the vote went that way, but it's still their decision, not that of the citizens. Thus the "illusion" of democracy. The power really lies in the hands of the ruler, not the people.
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