The answer is, I think, in the middle of the two
A complete democracy is extremely difficult to pull off, unless you have a very small, well educated group of people, like Athens did. They also had slaves... I'm not judging, it was perfectly fine to have them at the time, but it does make things easier.
A dictatorship is a terrible thing to have, no doubt about it. You can have a good, non-despotic dictator, but then, as Kingdroid pointed out, he dies and is very hard to replace. Again the athenian case, with Peisistratos, followed by his less able sons.
And the middle is were we're at. We appoint people to make decisions and to "dictate" for a limited period of time. Some of these modern democracies work better than others, of course, but it is by far the best way of organizing society that we've ever known.