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The mission to mars will be well after he builds the hyper loop across California, US, and Tesla implements full self driving. In other words, it’s something he told investors to secure their investment for something shorter term, while making it sound like he’s thinking far into the future.
And if he ever does sacrifice some suckers to keep up appearances, I don’t think he’d put up his hand to be one of them!
In the modern sense, I think most people would take the word “democracy” to include universal suffrage - at a minimum, all adults born or granted citizenship there should have the equal right to vote for it to be considered a democracy.
In practice, Israel has substantial control over the entire region from the Mediterranean Sea to the Jordan River, between Egypt and Lebanon (that is not to say that they should, just the reality) - in the sense that anyone in that area’s lives are significantly controlled by Israeli government decisions, and the Israeli government and military operates over that entire area.
So the minimum bar for it being a democracy is that adults - including the people with ancestral ties to the area that it controls - get an equal say in the governance. That is clearly not the case, and has not been for quite some time; it not being a democracy is not a recent development (maybe it’s never actually been a true democracy).