I don't think you can every have true democracy on competitive anything, becuase people are saddly influenced, and whats right really in there opinion gets overdone by what they want for themselfs. You can't really deny this either because already a few council members have said, or atleast insinuated "oh I don't like dealing with this, lets just get rid of it." I am not saying thats there fault either, people in power will and can make desicions for themselfs, and not on there true ideals. Now in real life, I am a socialist, but even I must admit there is not way to eliminate the competitveness factor in games such as this, its the nature of the game, and you just can't get rid of it.
The only way I can think of to eliminate, or atleast lessen the effects of self interest, would to have a more Republic based voting system. That way the counsil members would be voted in, and be forced, under threat of no re-election, to vote for what they believe. Of course this has its problems too, but I believe such a system would be a lot fairer then the current oligrachy system smogon has, where your influence comes from your skill and power, as opposed to what you just think.