Unfortunately, the Islamic language and practice at the present time has been for centuries controlled by a patriarchy. This has led to the concept of equality for females and people who have lifestyles other than the traditional heterosexual ones to be completely overridden by those who would keep these people from having a voice in the reform of any of the religious practices. This also keeps the citizens of countries who basically follow Islamic practices in a state of non-democratic or egalitarian compliance. Women, for the most part, have no voice in the governments of these nations and are treated like commodities. Many times, men and women of different sexual orientation than heterosexual are executed and even people of differing religious beliefs are excluded from public office. Perhaps in years to come, Islam will adopt the practices of democracy but at present time, these two concepts seem to be diametrically opposed to each other.
I do not believe that Islam is compatible with democracy. The main reason for this is because the essence of democracy is inclusion, and Islam actively excludes and silences the voices of those that they keep to the fringes of their society such as women and homosexual individuals. If the views of these people are not taken into account within their highly patriarchal society, then democracy is not really being practiced.