Delving into state policy risks having this discussion removed as spam, so it's better to focus on the realities of the game. For example, how the principle described above works in real-life situations.
Example #1 - organizing the CIS championship
Looking through the points in the list, it's clear that all 6 points are met here. Therefore, democracy is possible here.
And practice confirms this - this event has been held for 9 years through spontaneous self-organization, each time to everyone's satisfaction. And even if some disputes arise, they are due to an excess of enthusiasm and do not lead to serious consequences.
The only semi-exception is when, in 2017, when determining the location, a Schism almost occurred, and the rhetoric immediately began: "forget this democracy, the organizers need to agree among themselves." In full accordance with the theory outlined above... :)
Example #2 - developing HotA
Here, the situation is different - points #1, #2, #3, and partially #5 are not met (for other reasons). Therefore, democracy should be difficult here.
Again, practice confirms this - the development of HotA is carried out in a closed mode, and content is dictated from above.