To be clear, my thinking isn't that democracy will save us, only that it's credibly the highest collective cognition we can achieve, and we need to be putting the odds on our side. But we could still fail.
I'd also note in the condo story that, in a functioning polycentric system, decision-making failure at one level should be caught by other levels, in this case whatever city or state code inspection system has them in scope. The board failed, but not alone.