The fact is that the vast majority of CBers do not sufficiently understand the complex interactions of the game components in order to make informed technical decisions.
One of my reasons, good call Loch. Secondly I'm assuming that Loch is referring to the vast complexity of CB as a game. While this is a simple text based game, the amount of repercussions for small changes in balance are vast. So, I will cover some of the other reasons why small dev teams are better:
1) Speed, as with government, one of the reasons for having one ruler is quick and easy decision making. This was one of the reasons the United States has a president, also, empires in the past often favored kings because in times of war, it benefited to have a single cohesive mind planning out the attacks.
2) Understanding, often people who are not developers don't comprehend what is possible or is not possible in this type of field. Some things they believe would be nearly possible to implement are actually really easy, and vice versa. Developers, however, especially those who wrote the source code and have an overall idea of how the game runs can understand how difficult/long items to be implemented will take.
3) Agreeableness, Loch alluded to this slightly, but CB as a whole will never agree. Maybe 50-60% could come to an agreement, but very few topics will CB ever get a collective agreement of anywhere near 90%. If decisions were past through and implement democratically, it would create a vast schism in CB, and work against the community building we have worked hard for.
4) Finally, I can't think of a word for this, but I'm going to go with Responsibility/Stakeholder. The owners of this game have the most stake in it by far. Any profit that is made, good/bad reputation, all goes toward them. As such, they should be an integral part of the decision making. Secondly, the dev team, speaking strictly about CB here, is responsible for all the changes. Until CB come together and collectively collects a few thousand dollars to higher a coder, and convinces Nightstrike to agree to it, this will continue. As such, they too should be a big part of the decision making. If you anger the developers and owners, CB will take a hit. It would lose a lot of its financial support as well as the coders it depends on.
This is pretty CB specific, but I think it could be applied to most games/companies. Take Blizzard, and Starcraft 2. A lot of the people that play SC2 are tards (sorry b.net users), and cry for nerfs 24/7. If blizzard tried to run as a pure democracy, it would be a lot slower than it already is getting out updates, also, the game would be significantly worse ( I know that's hard to believe Pit ).