I will first admit I did not watch the video.
Religon and Democracy are not incompatible, but if the religion is the ruler over the people then it is not a Democracy but a "Dictatorship" of sorts.
For instance, you brought up the Catholic control over Europe. The religion did not control the European states, but the "rulers" of the religion. A group of individuals used the church to control the people, the rulers, and even blood lines of that time.
The "rulers" controled what people were allowed to read, think, say, and do. If you did not comply your were put in jail or put to death. Again, it wasn't the religion that said to do this, but the people who wanted power were able to use the religion to get what they wanted.
The pilgrims came to America to find religious freedom. Freedom from government controlled religion and religous controlled government. America showed that religion and government could co-exist in a Democracy.
So, no I do not believe that Islam is incompatible with democracy. But, if the religion is used to control what people are allowed to read, think, say, and do, then it is being used as a Dictatorship tool.
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